USLOANADVICE.COM

In 2021, banks paid out a massive $275 billion in cash to homeowners opting for a cash-out refinance program. Fourth quarter of 2021 marked the largest quarterly volume in 15 years, as more than 1 million homeowners chose a cash-out refinance. Specifically, they are blaming a duo of inflation and low rates that encourages homeowners to cash out at super low rates... Until now, refinancing was less about getting needed cash and more about lowering rates or payments. Inflation is now at a 40 year high and mortgage rates are at historical lows, encouraging homeowners to cash out thousands of dollars in equity in this uncertain time; all while keeping their payments and rates low.