In the second quarter, 66% of the homeowners who refinanced their homes got a mortgage at least 5% larger than the original loan, up from a revised 58% in the previous quarter but down from 84% a year earlier, according to Freddie Mac. In the first half, 9% of refinancing homeowners actually reduced their loan amounts, the government-sponsored enterprise said in its quarterly refinance review. "This is the largest cash-in share since the summer of 2005," said Frank Nothaft, Freddie Mac's chief economist. "This may reflect more cautious underwriting by lenders, resulting in homeowners' paying down their loan balance in order to receive more favorable loan rates and terms."
Processing Content
