This city had the highest share of cash-out refinance borrowers

Albany, N.Y., had the highest share of cash-out refinance borrowers among the cities covered in a LendingTree analysis of the loan’s prevalence.

The city had a 73% share of funded refinance mortgages with a cash-out portion, with loans having an average amount of $166,504. The analysis looked at mortgage requests and offers for refinance borrowers between March 1, 2017, and March 1, based on the location of the property to be mortgaged.

Portland, Ore., came in second with a 72% share. The city’s average loan amount was $266,152. Cape Coral, Fla., also had a 72% share of funded refinance mortgages with a cash-out portion. Loans in the city had an average amount of $162,975.

Meanwhile, Bridgeport, Conn., topped the rankings according to highest cash-out loan amounts. The city had an average loan amount of $453,307 and a 52% share of funded refinance mortgages with a cash-out portion.

Loans in San Jose, Calif., had an average amount of $451,777. The city had a 56% share of funded refinance mortgages with a cash-out portion. San Francisco’s share was slightly higher at 58%, with the average loan amount at $442,099.

According to LendingTree, data shows a favorable trend for an increase in cash-out refinancing. Such loans accounted for 62% of all refinances in the first quarter, increasing from the 54% share in the year-ago quarter.

LendingTree said the recent increase in mortgage rates has driven a drop in mortgage refinance application volume. Meanwhile, home prices keep climbing. In this environment, borrowers can choose to access the equity in their homes through a cash-out refinance. “This change in the mix of refinances — where more borrowers are interested in extracting home equity versus refinancing into a lower interest rate loan — leads to an increase in the share of cash-out loans as a proportion of total refinances,” LendingTree said.