THE BASIS POINT

Cash-In Refi Is The New Cash-Out Refi

Below are four current home U.S. price reports, beginning with today’s CoreLogic report. All show lower prices. This coincides with 2011 rate lows, which usually means borrowers can refinance—but not without home equity needed to qualify. Cash-out refinances were the definitive product of a boom era that went bust in mid-2006.

Now it’s all about the cash-in refi: given declining home values, how much must borrowers pay down their loan to qualify for a favorable refinance? As for purchases, lower prices can mean deals for buyers who study local markets to determine whether pricing is at or near bottom. The home price reports below are a good place to start.

-CoreLogic: March House Prices -1.5%, Prices now 4.6% below 2009 Lows (CalculatedRisk and CoreLogic March report 5/10)

-Zillow: No Respite From Housing Recession In 1Q2011 (Zillow report 5/8)

-Clear Capital: Double Dip In US Housing (Clear Capital report 5/5)

-S&P Case Shiller: February Home Prices Down 3.3% (Case Shiller report 4/26)