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Homeowners taking cash out of homes as economic uncertainty looms

Homeowners taking cash out of homes as economic uncertainty looms

The financial turmoil sparked by the coronavirus outbreak has one upside for homeowners: Cash-out refinancings are spiking along with overall refinancings, as borrowers rush to take advantage of mortgage rates that are down significantly from a year ago. The practice, known as a cash-out refinance, allows owners to take advantage of their home’s appreciation and borrow against the greater value, pocketing the additional cash. In March, mortgage applications more than doubled what they were last year.