home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Refinance News | Refinance Share Statistics
News about refinancing programs, pricing and production. Stories about the H o m e
Affordable Refinance Program, H A R P 2.0 and other Making Home Affordable coverage.

Cashout Share Pushes Higher

88% of 1st quarter refis included cashout

May 3, 2006

By MortgageDaily.com staff

While refinances represented a smaller portion of quarterly originations -- with half done at a 2 percent higher rate, the share that was cashout reached its highest level in 15 years.

In the first quarter, 88 percent of refinance loans owned by Freddie Mac had cashout of at least 5 percent of the original mortgage, the secondary lender announced. The share, which is the highest since the third quarter of 1990, is up from the fourth quarter's revised level of 81 percent and from 64 percent in the comparable period a year ago.

As rates on all mortgages rose between 0.02 percent and 0.25 percent, the overall share of refinance loans edged down during the first quarter to 44 percent. Freddie added that it expects the refinance share to fall to about one-third for the year.

"Almost no one is refinancing to reduce their interest rate in today's environment," Freddie Chief Economist Frank Nothaft said in a written statement. "In fact, the first quarter of 2006 is the first time in 20 quarters in which the new mortgage rate was higher than the old one for more than half of refinancing borrowers."

The median ratio of old-to-new interest rate was 0.98, meaning half of borrowers who refinanced got a rate that was at least 2 percent higher than the rate on their original loan.

One reason borrowers may be willing to increase the rates on their first mortgages is because the prime rate home equity loans are typically linked to is presently higher than rates on mortgage loans, Nothaft said.

Properties refinanced during the first quarter experienced a median house-price appreciation of 30 percent during the time since the original loan was made, rising from 29 percent in the fourth quarter and 17 percent a year ago, Freddie said.

The median age between when the original loan was made and the refinance was reportedly three years, about a month older than in the prior quarter.

Freddie said its estimates come from a sample of properties on which it has funded at least two successive loans.

Mortgage Rate News | Mortgage Market Index | ARM indices | ARM Statistics
Average fixed and ARM rates. Rate forecasts. Quotes on ARM indexes including COFI, MTA, LIBOR & Treasuries. Rate reset studies and reports. Mortgage rate litigation.

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders