US DATA: Freddie Mac’s Q1 refinance analysis showing homeowners who
refinance continue to strengthen their fiscal house. “In Q1:2011,
3-out-of-4 homeowners who refinanced their first-lien home mortgage
either maintained about the same loan amount or lowered their principal
balance by paying-in additional money at the closing table. Fifty-four
percent maintained about the same loan amount, the highest share since
1985, when Freddie Mac began keeping records on refinancing patterns. In
addition, 21 percent of refinancing homeowners reduced their principal
balance. “Cash-out” borrowers, those that increased their loan balance
by at least five percent, represented 25 percent of all refinance loans;
the average cash-out share over the past 25 years was 62 percent.”