Americans are cashing-out home equity with higher rates

Almost 60% of cash-out refis last year came with higher rates

Americans are cashing out home equity by refinancing their mortgages, even if it means they’re paying higher interest rates.

Nearly 60% of cash-out refinancings in 2018 came with higher interest rates, the biggest share since before the financial crisis, according to a Wall Street Journal story citing mortgage-data firm Black Knight.

“For some homeowners, the trade-off is worth it,” the Journal story said. “While mortgage rates have crept up, they are still lower than what borrowers would pay if they tapped a credit-card or home-equity line of credit.”

Boosted by refis, lenders originated $700 billion in mortgages in the third quarter, the most since before the financial crisis, according to industry research group Inside Mortgage Finance.

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