1/3 of homeowners who refinanced their mortgage lowered their principal balance by bringing cash to the closing table. As mortgage rates continue to hover around historic lows, more and more people are paying their closing costs (and sometimes even bringing additional funds) rather than rolling them into the loan or taking cash out of their mortgages when they refinance. Cash-in refinances are growing in popularity as they can enable homeowners to get a new mortgage with a principal amount that is less than their original mortgage. On top of that, they also get the relief of a lower mortgage rate and payment. It’s really a win-win.
The days of treating a home as a bank seem to be gone for now, as the number of owners taking cash out of their mortgage fell to the lowest levels seen since 1985. Those who refinanced enjoyed an average interest rate reduction of around 1% which in turn shaved about 18% off their monthly payments. If you haven’t refinanced yet, talk to a Home Loan Expert today!
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