'Cash-in' Refinances Plug Equity Drains

Daily Real Estate News | May 6, 2010 |

Freddie Mac says a third of borrowers who refinanced in the fourth quarter of 2009 brought a check to settlement, marking a record high rate of "cash-in" deals as cash-out refis hit a record low of 27 percent.

Cash-in refis release homeowners from underwater mortgages and free up equity.

Experts say their popularity can be attributed to falling home prices that make borrowers ineligible for refis without fronting some cash, as well as the desire to avoid mortgage insurance or higher jumbo loan rates.

Source: Realty Times, Broderick Perkins (05/06/10)