Freddie: Equity-Tapping Refis Rose in 1Q

Forty-three percent of the homeowners who refinanced their homes in the third quarter tapped into their equity by getting a mortgage at least 5% larger than the original loan, according to Freddie Mac's quarterly refinance review.The figure was up slightly from 41% in the fourth quarter but down dramatically from 60% in the first quarter of 2002, the government-sponsored enterprise said. "Interest rates on 30-year fixed-rate mortgages have been below 6% for the last 18 weeks, setting five record lows this year," said Amy Crews Cutts, Freddie Mac's deputy chief economist. "This added tremendous fuel to the longest refi boom in U.S. history. Additionally, homeowners have continued to extract equity from their homes when they refinance due to the strong growth in home values over the past several years and the very low cost of mortgage financing." Freddie Mac can be found online at http://www.freddiemac.com.