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.

Cashouts Soar

Freddie survey reflects 60% of refis had cashout in Q3

November 4, 2004

By MortgageDaily.com staff

Transactions with cashout now represent well over half of all refinances.

Freddie Mac's third quarter Refinance Review showed that 60% of its refinanced loans included cashout -- where the new loan amount was at least 5% more than the principal balance of the original amount. The number sharply contrasts the second quarter's revised figure of 42% and that of 34% a year ago.

"In the latter half of the second quarter and in the first half of the third quarter 30-year, fixed mortgage rates were above six percent, which led to a big falloff in refinance applications," Freddie chief economist Frank Nothaft said in a prepared statement. "The largest decline was in homeowners looking to save money by lowering their mortgage rates, since most mortgages already carry very low rates. However, for cashout refinancers these low rates were a very cost effective way for them to finance a big project such as home improvements or to consolidate and pay off consumer debt."

The third quarter's higher rates reduced the refinance share of mortgage applications to 40%, according to the government-sponsored enterprise. Although refi activity may increase this quarter due to lower rates in recent weeks, the small share of mortgages outstanding with rates above 6.5% make it unlikely that the share will exceed 50% or maintain that level if it does.

The mortgage giant said it expects the 30-year fixed mortgage rate average to stay below six percent throughout early 2005 and end that year at about 6.25%.

Freddie estimated $41 billion in home equity was cashed out during the third quarter, up from $28.5 billion the previous quarter. The secondary lender said it expects Americans to pull out $118 billion in home equity this year. Freddie had initially forecast $114 billion, but then lowered it significantly to $71 billion when it announced the second quarter's cashout results.

On an average loan size of $150,000, homeowners who refinanced their mortgages in the third quarter lowered their rate an average of 0.68 percentage points, according to Freddie deputy chief economist Amy Cutts.

Refinanced properties appreciated 17% in value by the time the refinance loan was made -- up dramatically from 7% in the second quarter and 5% in the third quarter last year, according to the review.

The median age of loans refinanced in the third quarter was 2.6 years from the original loan, or six months older than in the prior quarter, the McLean, Va.-based company reported.

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

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