46% of Homeowners Bring Cash In To Refinance
Freddie Mac reports that in the fourth quarter a record percentage of homeowners brought cash in to lower their loan balances. Borrowers are buying peace of mind about their debts by moving to more affordable mortgages and coming out ahead by using cash that's earning little interest in the bank.
They can realize significant savings on monthly loan payments, according to an article by The Washington Post. The trend marks a sharp reversal from the days of the housing boom, when people used homes like ATMS and pulled out cash to pay for vacations and other expenses.