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Home Equity Extraction by Homeowners: 2000-2006

Posted: 1 Feb 2009  

Michael LaCour-Little

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

Eric Rosenblatt

Federal National Mortgage Association (Fannie Mae) - Research

Vincent W. 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 W., 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

California State University at Fullerton ( email )

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

Federal National Mortgage Association (Fannie Mae) ( email )

3900 Wisconsin Avenue, NW
Washington, DC 20016-2892
United States
202-752-3318 (Phone)

Eric Rosenblatt

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

16517 Keats Terrace
Derwood, MD 20855
United States

Vincent W. Yao (Contact Author)

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

35 Broad Street
Atlanta, GA 30303-3083
United States

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