Home Equity Extraction by Homeowners: 2000-2006

Posted: 1 Feb 2009

See all articles by Michael LaCour-Little

Michael LaCour-Little

Federal National Mortgage Association (Fannie Mae); California State University at Fullerton

Eric Rosenblatt

Federal National Mortgage Association (Fannie Mae) - Research

Vincent Yao

Georgia State University - J. Mack Robinson College of Business

Date Written: February 1, 2009

Abstract

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

Suggested Citation

LaCour-Little, Michael and Rosenblatt, Eric and Yao, Vincent, Home Equity Extraction by Homeowners: 2000-2006 (February 1, 2009). Journal of Real Estate Research, 2009. Available at SSRN: https://ssrn.com/abstract=1336049

Michael LaCour-Little

Federal National Mortgage Association (Fannie Mae) ( email )

1100 15th St NW
Washington, DC 20005
United States
202-752-3318 (Phone)

California State University at Fullerton ( email )

5133 Mihaylo Hall
Fullerton, CA 92834-6848
United States
657-278-4014 (Phone)
657-278-2161 (Fax)

Eric Rosenblatt

Federal National Mortgage Association (Fannie Mae) - Research ( email )

16517 Keats Terrace
Derwood, MD 20855
United States

Vincent Yao (Contact Author)

Georgia State University - J. Mack Robinson College of Business ( email )

35 Broad Street
Atlanta, GA 30303-3083
United States

Register to save articles to
your library

Register

Paper statistics

Abstract Views
707
PlumX Metrics