March 12, 2021

Refinancings

Cash-Out Refinancings Hit Highest Level Since Financial Crisis

Americans extracted more cash from their homes through cash-out refinancings in 2020 than in any year since the financial crisis.

U.S. homeowners cashed out $152.7 billion in home equity last year, a 42% increase from 2019 and the most since 2007, according to mortgage-finance giant

Freddie Mac.

It was a blockbuster year for mortgage originations in general as well: Lenders churned out more mortgages than ever in 2020, fueled by about $2.8 trillion in refis, according to mortgage-data firm Black Knight Inc.

Some borrowers viewed cash-out refis as a way to cushion themselves against an uncertain economy last year.

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