[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"$f10adi1ugu6rkr":3,"$ffeh0925h8cuz":39,"$f2emv3tus0uf1":43,"$fbwk2pqjjqsc7":47},{"item":4,"previous":27,"next":33},{"id":5,"slug":6,"title":7,"description":8,"excerpt":9,"contentType":10,"featuredImage":11,"bannerImage":9,"body":12,"agentsBottomLine":13,"bodyImage":14,"isInfographic":15,"categories":16,"isVideo":15,"videoThumbnail":9,"videoSource":9,"publishedAt":25,"updatedAt":26},1846,"should-we-fear-the-surge-in-cash-out-refinances","Should We Fear the Surge in Cash-Out Refinances?","\u003Cem>Freddie Mac\u003C\u002Fem> recently released their \u003Ca href=\"http:\u002F\u002Fwww.freddiemac.com\u002Fresearch\u002Fdatasets\u002Frefinance-stats\u002Findex.page\">Quarterly Refinance Statistics\u003C\u002Fa> report which covers refinances through 2020. The report explains that the dollar amount of cash-out refinances was greater in 2020 than in recent years. A\u003Cem> cash-out refinance\u003C\u002Fem>, as \u003Ca href=\"https:\u002F\u002Fwww.investopedia.com\u002Fterms\u002Fc\u002Fcashout_refinance.asp\">defined\u003C\u002Fa> by \u003Cem>Investopia\u003C\u002Fem>, is:","","blog","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2021\u002F03\u002F22164800\u002F20210323-KCM-Share.jpg","\u003Cem>Freddie Mac\u003C\u002Fem> recently released their \u003Ca href=\"http:\u002F\u002Fwww.freddiemac.com\u002Fresearch\u002Fdatasets\u002Frefinance-stats\u002Findex.page\">Quarterly Refinance Statistics\u003C\u002Fa> report which covers refinances through 2020. The report explains that the dollar amount of cash-out refinances was greater in 2020 than in recent years. A\u003Cem> cash-out refinance\u003C\u002Fem>, as \u003Ca href=\"https:\u002F\u002Fwww.investopedia.com\u002Fterms\u002Fc\u002Fcashout_refinance.asp\">defined\u003C\u002Fa> by \u003Cem>Investopia\u003C\u002Fem>, is:\u003C!--more-->\r\n\u003Cblockquote>\u003Cem>“a mortgage refinancing option in which an old mortgage is replaced for a new one with a larger amount than owed on the previously existing loan, helping borrowers use their home mortgage to get some cash.”\u003C\u002Fem>\u003C\u002Fblockquote>\r\nThe \u003Cem>Freddie Mac\u003C\u002Fem> report led to articles like the one published by \u003Cem>The Real Deal\u003C\u002Fem> titled, \u003Cem>House or ATM? Cash-Out Refinances Spiked in 2020,\u003C\u002Fem> which \u003Ca href=\"https:\u002F\u002Ftherealdeal.com\u002Fnational\u002F2021\u002F03\u002F11\u002Fhouse-or-atm-cash-out-refinancings-spiked-in-2020\u002F\">reports\u003C\u002Fa>:\r\n\u003Cblockquote>\u003Cem>“Americans treated their homes like ATMs last year, withdrawing $152.7 billion amid a cash-out refinancing spree not seen since before the 2008 financial crisis.”\u003C\u002Fem>\u003C\u002Fblockquote>\r\nWhenever you combine the terms “\u003Cem>spiked\u003C\u002Fem>,” “\u003Cem>homes like ATMs\u003C\u002Fem>,” and “\u003Cem>financial crisis\u003C\u002Fem>,” it conjures up memories of the housing crash we experienced in 2008.\r\n\r\nHowever, \u003Cstrong>that comparison is invalid\u003C\u002Fstrong> for three reasons:\r\n\u003Ch4>\u003Cstrong>1. Americans are sitting on much more home equity today.\u003C\u002Fstrong>\u003C\u002Fh4>\r\nMortgage data giant \u003Cem>Black Knight\u003C\u002Fem> just issued information on the amount of \u003Ca href=\"https:\u002F\u002Fwww.blackknightinc.com\u002Fblog-posts\u002Ftappable-equity-skyrockets-to-record-high-in-2020\u002F\">\u003Cem>tappable equity\u003C\u002Fem>\u003C\u002Fa> U.S. homeowners with a mortgage have. \u003Cem>Tappable equity\u003C\u002Fem> is the amount of equity available for homeowners to use and still have 20% equity in their home. Here’s a graph showing the findings from their report:\u003Ca href=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2021\u002F03\u002F20210323-MEM-Eng-1.png\">\u003Cimg class=\"aligncenter wp-image-44066\" src=\"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2021\u002F03\u002F20210323-MEM-Eng-1.png\" alt=\"Should We Fear the Surge in Cash-Out Refinances? | Simplifying The Market\" width=\"650\" height=\"488\" \u002F>\u003C\u002Fa>In 2006, directly before the crash, tappable home equity in the U.S. topped out at $4.6 trillion. Today, that number is \u003Cstrong>$7.3 trillion.\u003C\u002Fstrong>\r\n\r\nAs \u003Cem>Black Knight\u003C\u002Fem> explains:\r\n\u003Cblockquote>\u003Cem>“At year’s end, some 46 million homeowners held a total $7.3 trillion in tappable equity, the largest amount ever recorded...That’s an increase of more than $1.1 trillion (+18%) since the end of 2019, the largest percentage gain since 2013 and – you guessed it – the largest dollar value gain in history, to boot. All in all, it works out to roughly $158,000 on average per homeowner with tappable equity, up nearly $19,000 from the end of 2019.”\u003C\u002Fem>\u003C\u002Fblockquote>\r\n\u003Ch4>\u003Cstrong>2. Homeowners cashed-out a much smaller amount this time.\u003C\u002Fstrong>\u003C\u002Fh4>\r\nIn 2006, Americans cashed-out a total of $321 billion. In 2020, that number was less than half, totaling $153 billion. The $321 billion made up 7% of the total tappable equity in the country in 2006. On the other hand, the $153 billion made up only 2% of the total tappable equity last year.\r\n\u003Ch4>\u003Cstrong>3. Fewer homeowners tapped their equity in 2020 than in 2006.\u003C\u002Fstrong>\u003C\u002Fh4>\r\n\u003Cem>Freddie Mac\u003C\u002Fem> reports that 89% of refinances in 2006 were cash-out refinances. Last year, that number was less than half at 33%. As a percentage of those who refinanced, many more Americans lowered their equity position fifteen years ago as compared to last year.\r\n\u003Ch3>\u003Cstrong>Bottom Line\u003C\u002Fstrong>\u003C\u002Fh3>\r\nIt’s true that many Americans liquidated a portion of the equity in their homes last year for various reasons. However, less than half of them tapped their equity compared to 2006, and they cashed-out less than one-third of that available equity. Today’s cash-out refinance situation bears no resemblance to the situation that preceded the housing crash.","\r\nIt’s true that many Americans liquidated a portion of the equity in their homes last year for various reasons. However, less than half of them tapped their equity compared to 2006, and they cashed-out less than one-third of that available equity. Today’s cash-out refinance situation bears no resemblance to the situation that preceded the housing crash.","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002Fwp-content\u002Fuploads\u002F2021\u002F03\u002F20210323-MEM-Eng-1.png",false,[17,21],{"id":18,"name":19,"slug":20},5,"For Buyers","buyers",{"id":22,"name":23,"slug":24},6,"For Sellers","sellers","2021-03-23T10:00:10Z","2021-03-23T10:00:12Z",{"id":28,"slug":29,"title":30,"featuredImage":31,"publishedAt":32,"contentType":10,"isVideo":15},1845,"what-credit-score-do-you-need-for-a-mortgage","What Credit Score Do You Need for a Mortgage?","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2021\u002F03\u002F18170459\u002F20210322-KCM-Share.jpg","2021-03-22T10:00:40Z",{"id":34,"slug":35,"title":36,"featuredImage":37,"publishedAt":38,"contentType":10,"isVideo":15},1847,"why-you-should-think-about-listing-prices-like-an-auctions-reserve-price","Why You Should Think About Listing Prices Like an Auction’s Reserve Price","https:\u002F\u002Ffiles.simplifyingthemarket.com\u002Fwp-content\u002Fuploads\u002F2021\u002F03\u002F22131208\u002F20210324-KCM-Share.jpg","2021-03-24T10:00:40Z",{"cover":40,"open":41,"shareSpread":42},"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Cover-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Spread-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Buyers-Guide-Magazine-original.png",{"cover":44,"open":45,"shareSpread":46},"https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Sellers-Guide-Cover-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Sellers-Guide-Spread-original.png","https:\u002F\u002Ffiles.keepingcurrentmatters.com\u002FKeepingCurrentMatters\u002Fcontent\u002Fimages\u002F20260603\u002F2026-Summer-Sellers-Guide-Magazine-original.png",[48,52,53,54,58,62,66,70,74,78,82,86,90,94,98,102,106,110,114,118,122,126,130,134,138,142,146,150,154,158],{"id":49,"name":50,"slug":51},1,"Uncategorized","uncategorized",{"id":18,"name":19,"slug":20},{"id":22,"name":23,"slug":24},{"id":55,"name":56,"slug":57},7,"Foreclosures","foreclosures",{"id":59,"name":60,"slug":61},8,"Infographics","infographics",{"id":63,"name":64,"slug":65},9,"Home Prices","home-prices",{"id":67,"name":68,"slug":69},11,"First-Time Buyers","first-time-buyers",{"id":71,"name":72,"slug":73},34,"Senior Market","senior-market",{"id":75,"name":76,"slug":77},35,"Mortgage Rates","mortgage-rates",{"id":79,"name":80,"slug":81},38,"Move-Up","move-up",{"id":83,"name":84,"slug":85},41,"For Sale by Owner","for-sale-by-owner",{"id":87,"name":88,"slug":89},42,"Featured","featured",{"id":91,"name":92,"slug":93},45,"New Construction","new-construction",{"id":95,"name":96,"slug":97},52,"Luxury \u002F Vacation","luxury--vacation",{"id":99,"name":100,"slug":101},53,"Rent vs. Buy","rent-vs-buy",{"id":103,"name":104,"slug":105},80,"Time-sensitive","time-sensitive",{"id":107,"name":108,"slug":109},81,"Outdated","outdated",{"id":111,"name":112,"slug":113},147,"Internal","internal",{"id":115,"name":116,"slug":117},148,"Do Not Autopost","do-not-autopost",{"id":119,"name":120,"slug":121},320,"Inventory","inventory",{"id":123,"name":124,"slug":125},321,"Agent Value","agent-value",{"id":127,"name":128,"slug":129},322,"Affordability","affordability",{"id":131,"name":132,"slug":133},323,"Buying Tips","buying-tips",{"id":135,"name":136,"slug":137},324,"Downsize","downsize",{"id":139,"name":140,"slug":141},325,"Economy","economy",{"id":143,"name":144,"slug":145},326,"Equity","equity",{"id":147,"name":148,"slug":149},327,"Forecasts","forecasts",{"id":151,"name":152,"slug":153},328,"Selling Tips","selling-tips",{"id":155,"name":156,"slug":157},339,"Expired\u002FWithdrawn\u002FCanceled","expiredwithdrawncanceled",{"id":159,"name":160,"slug":161},340,"Price It Right\u002FOverpricing","price-it-rightoverpricing"]