Cash-Out Refinancing Activity Has Soared: Should We Be Worried?

Matthew Frankel, CFP, The Motley Fool
·4-min read

Homeowners in the United States are taking more cash out of their homes than before the financial crisis, according to Freddie Mac (OTCMKTS: FMCC). This was 42% more cash-out refinancing activity than took place in 2019 and is the highest level since 2007, just before the financial crisis hit. This cash-out refinancing boom brings back bad memories for people who remember the financial crisis well.