Cash-Out Refis Surge as Owners Use Equity Gains

An image of a house miniature sitting upon three thick bound stacks of money sitting atop a blueprint.

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With double-digit annual gains fueling homeowner wealth, owners have gotten richer, and they’re starting to take advantage of that added equity.

Cash-out refinancing, which allows owners to take out a lump sum from their equity through loans, increased by 33% in October compared to a year prior, according to Black Knight Inc.

The amount of U.S. tappable home equity reached a record high in October of $9.1 trillion, according to Black Knight.

“We have record home equity thanks to record home prices,” Dan Roccato, a financial analyst with Credible, told “We’ve had this incredible run-up in home prices over the last 18 months.”

Homeowners must meet certain credit standards to be able to tap into their home’s equity through cash-out refinancing. Lenders usually cap mortgages at 80% of a home’s value.

The median existing-home price for all housing types nationwide in September was up 13.3%, according to the National Association of REALTORS®. NAR predicts that prices slow in the new year, mostly due to rising mortgage rates that will likely lead to fewer home sales. Home prices are predicted to moderate at a 2.8% growth in 2022, according to NAR.