Home Equity Extraction by Homeowners: 2000-2006
California State University at Fullerton
Federal National Mortgage Association (Fannie Mae) - Research
Vincent W. Yao
Federal National Mortgage Association (Fannie Mae); American University
February 1, 2009
Journal of Real Estate Research, 2009
We develop a unique paired loan dataset containing information on multiple conventional conforming mortgage loans of households to examine home equity extraction decisions over the period 2000-2006. The main question addressed is how much households borrow when refinancing their current mortgage debt in a cash-out transaction. We also provide estimates of the marginal effect of certain borrower characteristics. Results contribute both to the literature on refinancing behavior and the role of house price appreciation in providing funds that may be used for consumer spending or other purposes.
Keywords: Cash our refinance, equity extraction
JEL Classification: E2, E4, G2
Date posted: February 1, 2009
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