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Cash-out refinances on the rise

Posted by Mehran Aram on Wed, Apr 17, 2019 @ 06:04 AM

Homeowners in the U.S. are sitting on $5.7 trillion in equity borrowing potential according to Black Knight, a mortgage-data and technology company. This is a record high. When coupled with low mortgage rates, it’s not surprising that cash-out refinances are near their highest levels since 2007. Freddie Mac has previously reported that approximately 8 out of every 10 refinances happening have the homeowner taking cash-out of their home’s equity.

Some experts predicted that cash-out refinances would drop after new federal tax laws eliminated the interest deduction for equity loans unless the money is spent on home improvements that will raise property value. However, any declines due to these changes in tax law have apparently been countered by favorable borrowing rates.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: home equity, Freddie Mac, Black Knight, Mortgage rates, Property Values, cash out refinance, Homeowner, Federal Tax Laws

ARAMCO Report - Thursday July 3, 2014

Posted by Mehran Aram on Thu, Jul 3, 2014 @ 17:07 PM

A much better than expected June employment report initially pushed bond yields sharply higher, but later in the session half of those losses were recouped. Traders concluded that the report did not show enough economic acceleration to shift the Fed’s monetary policy. Meanwhile according to Black Knight, foreclosure starts unexpectedly jumped by 9.5% in May. Conforming no point 30 year fixed mortgage rates average 4 1/8th with 15 year rates closer to 3 1/8th.

And now for something completely different: Did you know that on April 9, 1993, the Colorado Rockies set a team record for attendance on an Opening Day game? 80,227 fans came to see the first game ever at Mile High Stadium.

For more information on a home purchase, refinance, or a reverse mortgage, visit our website at www.ARAMCO.Biz or call me at (877) 700-0942.

This is Mehran Aram with today's ARAMCO Report.

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Topics: Reverse Mortgage, Aramco Report, and now for something completely different, home purchase, Colorado Rockies, Mile High Stadium, 30 year fixed rates, foreclosures, employment, Black Knight