LendingTree Ranks Cities with Highest Share of Cash-Out Refinance Borrowers

Released  April 2, 2018
By Megan Greuling
https://www.lendingtree.com/2018/04/cities-with-the-highest-share-of-cash-out-refinance-borrowers/

CHARLOTTE, N.C., April 2, 2018 – LendingTree®, the nation’s leading online loan marketplace, today released the findings of its study on where cash-out refinancing was most prevalent in the past year.

Mortgage rates have increased over the past six months, which has led to a decline in mortgage refinance applications. At the same time, home prices continue to increase at a robust pace. In such an environment, borrowers who have had meaningful appreciation in their homes can still have an incentive to access this equity via a cash-out refinance, in which the new mortgage balance is higher than the outstanding balance prior to refinancing. This change in the mix of refinances — less interest rate-driven loans and more driven by the pursuit of equity extraction — leads to an increase in the share of cash-out loans as a proportion of all refinances.

LendingTree data has shown this trend toward more cash-out refinancing. Cash-out loans have risen to 62 percent of all refinances in Q1 2018, up from 54 percent in Q1 2017. However, not all areas of the country have the same propensity to access cash-out refinance mortgages, and the study used LendingTree data to assess where it was most prevalent over the past year.

LendingTree analyzed mortgage requests and offers for refinance borrowers between March 1, 2017 and March 1, 2018, based on the location of the property to be mortgaged. The city rankings are generated from the percentage of total refinance mortgage funded that included a cash-out portion of the loan.

Cities with the highest share of cash-out borrowers
#1 Albany, N.Y.

  • Share of refinance mortgages funded with cash-out portion: 73%
  • Average loan amount: $166,504

#2 Portland, Ore.

  • Share of refinance mortgages funded with cash-out portion: 72%
  • Average loan amount: $266,152

#3 Fort Myers, Fla.

  • Share of refinance mortgages funded with cash-out portion: 72%
  • Average loan amount: $162,975

 
Cities with the highest cash-out loan amounts
#1 Stamford, Conn.

  • Share of refinance mortgages funded with cash-out portion: 52%
  • Average loan amount: $453,307

#2 San Jose, Calif.

  • Share of refinance mortgages funded with cash-out portion: 56%
  • Average loan amount: $451,777

#3 San Francisco, Calif.

  • Share of refinance mortgages funded with cash-out portion: 58%
  • Average loan amount: $442,099

 

Most Popular Cities by Share of Cash-Out Borrowers
Rank City %Cash-out Loan Amount
1 Albany, N.Y. 73% 166,504
2 Portland, Ore. 72% 266,152
3 Cape Coral, Fla. 72% 162,975
4 Boise City, Idaho 72% 209,033
5 Scranton, Pa. 71% 142,666
6 Denver 71% 280,373
7 Greenville, S.C. 71% 179,724
8 Colorado Springs, Colo. 69% 250,891
9 Tulsa, Okla. 69% 184,795
10 Des Moines, Iowa 69% 166,776
10 Grand Rapids, Mich. 69% 170,414
10 Ogden, Utah 69% 224,974
13 Provo, Utah 68% 236,751
14 Pittsburgh 68% 159,815
15 Sarasota, Fla. 68% 199,917
16 Nashville, Tenn. 68% 207,454
17 Augusta, Ga. 66% 155,778
18 Louisville/Jefferson County, Ky. 66% 173,102
19 Salt Lake City 66% 256,267
20 Lakeland, Fla. 66% 163,339
21 Seattle 66% 300,036
22 Tampa, Fla. 66% 189,385
23 Baton Rouge, La. 65% 178,660
24 Kansas City, Mo. 65% 185,666
25 Omaha, Neb. 65% 194,561
26 Charlotte, N.C. 65% 202,777
27 Dallas 65% 195,783
28 Birmingham, Ala. 65% 180,706
29 Chattanooga, Tenn. 65% 167,661
30 Austin, Texas 65% 208,937
31 Spokane, Wash. 65% 200,212
32 Riverside, Calif. 64% 265,315
33 Palm Bay, Fla. 64% 187,637
34 Jacksonville, Fla. 64% 210,111
35 Oklahoma City 63% 172,483
36 Memphis, Tenn. 63% 165,532
37 Knoxville, Tenn. 63% 174,091
38 Sacramento, Calif. 63% 276,262
39 San Diego 63% 373,039
40 Wichita, Kan. 63% 148,242
41 Deltona, Fla. 63% 162,557
42 Minneapolis 63% 218,098
43 Fresno, Calif. 63% 219,185
44 New Orleans 62% 207,025
45 Columbia, S.C. 62% 182,261
46 Charleston, S.C. 62% 209,641
47 Richmond, Va. 62% 202,997
48 Boston 62% 295,981
49 Miami 62% 230,379
50 Columbus, Ohio 61% 172,103
51 Los Angeles 61% 364,453
52 Stockton, Calif. 61% 256,005
53 Oxnard, Calif. 61% 357,376
54 Honolulu 61% 415,224
55 San Antonio 60% 179,059
56 Phoenix 60% 211,780
57 Houston 60% 192,272
58 Bakersfield, Calif. 60% 200,741
59 Buffalo, N.Y. 59% 136,014
60 Orlando, Fla. 59% 197,814
61 Indianapolis 59% 157,750
62 Detroit 59% 179,035
63 Las Vegas 59% 227,364
64 St. Louis 58% 179,868
65 New York 58% 298,928
66 Cleveland, Ohio 58% 155,220
67 Atlanta 58% 201,715
68 Dayton, Ohio 58% 153,870
69 Allentown, Pa. 58% 201,845
70 Cincinnati 58% 174,996
71 San Francisco 58% 442,099
72 Hartford, Conn. 58% 237,899
73 Syracuse, N.Y. 57% 126,674
74 Greensboro, N.C. 57% 162,054
75 New Haven, Conn. 56% 206,543
76 Chicago 56% 202,890
77 Little Rock, Ark. 56% 156,240
78 Tucson, Ariz. 56% 194,117
79 Harrisburg, Pa. 56% 177,939
80 San Jose, Calif. 56% 451,777
81 Virginia Beach, Va. 55% 233,278
82 Durham, N.C. 55% 202,982
83 Philadelphia 55% 214,542
84 Milwaukee 55% 205,253
85 Toledo, Ohio 54% 146,349
86 Albuquerque, N.M. 54% 189,533
87 Rochester, N.Y. 54% 142,580
88 Akron, Ohio 53% 165,577
89 Raleigh, N.C. 53% 218,675
90 Youngstown, Ohio 53% 142,020
91 McAllen, Texas 53% 130,076
92 Worcester, Mass. 53% 228,144
93 Bridgeport, Conn. 52% 453,307
94 Washington 52% 319,142
95 El Paso, Texas 51% 149,588
96 Winston, N.C. 51% 171,232
97 Providence, R.I. 51% 239,872
98 Madison, Wis. 50% 203,529
99 Baltimore 49% 260,665
100 Springfield, Mass. 48% 213,775
 
Most Popular Cities by Average Cash-Out Loan Amount
Rank City % Cash-out Loan Amount
1 Bridgeport, Conn. 52% 453,307
2 San Jose, Calif. 56% 451,777
3 San Francisco 58% 442,099
4 Honolulu 61% 415,224
5 San Diego 63% 373,039
6 Los Angeles 61% 364,453
7 Oxnard, Calif. 61% 357,376
8 Washington 52% 319,142
9 Seattle 66% 300,036
10 New York 58% 298,928
10 Boston 62% 295,981
10 Denver 71% 280,373
13 Sacramento, Calif. 63% 276,262
14 Portland, Ore. 72% 266,152
15 Riverside, Calif. 64% 265,315
16 Baltimore 49% 260,665
17 Salt Lake City 66% 256,267
18 Stockton, Calif. 61% 256,005
19 Colorado Springs, Colo. 69% 250,891
20 Providence, R.I. 51% 239,872
21 Hartford, Conn. 58% 237,899
22 Provo, Utah 68% 236,751
23 Virginia Beach, Va. 55% 233,278
24 Miami 62% 230,379
25 Worcester, Mass. 53% 228,144
26 Las Vegas 59% 227,364
27 Ogden, Utah 69% 224,974
28 Fresno, Calif. 63% 219,185
29 Raleigh, N.C. 53% 218,675
30 Minneapolis 63% 218,098
31 Philadelphia 55% 214,542
32 Springfield, Mass. 48% 213,775
33 Phoenix 60% 211,780
34 Jacksonville, Fla. 64% 210,111
35 Charleston, S.C. 62% 209,641
36 Boise City, Idaho 72% 209,033
37 Austin, Texas 65% 208,937
38 Nashville, Tenn. 68% 207,454
39 New Orleans 62% 207,025
40 New Haven, Conn. 56% 206,543
41 Milwaukee 55% 205,253
42 Madison, Wis. 50% 203,529
43 Richmond, Va. 62% 202,997
44 Durham, N.C. 55% 202,982
45 Chicago 56% 202,890
46 Charlotte, N.C. 65% 202,777
47 Allentown, Pa. 58% 201,845
48 Atlanta 58% 201,715
49 Bakersfield, Calif. 60% 200,741
50 Spokane, Wash. 65% 200,212
51 Sarasota, Fla. 68% 199,917
52 Orlando, Fla. 59% 197,814
53 Dallas 65% 195,783
54 Omaha, Neb. 65% 194,561
55 Tucson, Ariz. 56% 194,117
56 Houston 60% 192,272
57 Albuquerque, N.M. 54% 189,533
58 Tampa, Fla. 66% 189,385
59 Palm Bay, Fla. 64% 187,637
60 Kansas City, Mo. 65% 185,666
61 Tulsa, Okla. 69% 184,795
62 Columbia, S.C. 62% 182,261
63 Birmingham, Ala. 65% 180,706
64 St. Louis 58% 179,868
65 Greenville, S.C. 71% 179,724
66 San Antonio 60% 179,059
67 Detroit 59% 179,035
68 Baton Rouge, La. 65% 178,660
69 Harrisburg, Pa. 56% 177,939
70 Cincinnati 58% 174,996
71 Knoxville, Tenn. 63% 174,091
72 Louisville/Jefferson County, Ky. 66% 173,102
73 Oklahoma City 63% 172,483
74 Columbus, Ohio 61% 172,103
75 Winston, N.C. 51% 171,232
76 Grand Rapids, Mich. 69% 170,414
77 Chattanooga, Tenn. 65% 167,661
78 Des Moines, Iowa 69% 166,776
79 Albany, N.Y. 73% 166,504
80 Akron, Ohio 53% 165,577
81 Memphis, Tenn. 63% 165,532
82 Lakeland, Fla. 66% 163,339
83 Cape Coral, Fla. 72% 162,975
84 Deltona, Fla. 63% 162,557
85 Greensboro, N.C. 57% 162,054
86 Pittsburgh 68% 159,815
87 Indianapolis 59% 157,750
88 Little Rock, Ark. 56% 156,240
89 Augusta, Ga. 66% 155,778
90 Cleveland, Ohio 58% 155,220
91 Dayton, Ohio 58% 153,870
92 El Paso, Texas 51% 149,588
93 Wichita, Kan. 63% 148,242
94 Toledo, Ohio 54% 146,349
95 Scranton, Pa. 71% 142,666
96 Rochester, N.Y. 54% 142,580
97 Youngstown, Ohio 53% 142,020
98 Buffalo, N.Y. 59% 136,014
99 McAllen, Texas 53% 130,076
100 Syracuse, N.Y. 57% 126,674

 
 
“There are three primary ways to access the equity built up in the home: cash-out refinance, home equity loan or home equity line of credit (HELOC),” said Tendayi Kapfidze, Chief Economist at LendingTree. “Borrowers can use the cash extracted to perform home renovations, consolidate debt, purchase appliances or cars, go on vacation, start a business or even as a down payment on a second home. Borrowers should educate themselves on these three loan types and select the one best for their circumstances.”

About LendingTree
LendingTree (NASDAQ: TREE) is the nation's leading online loan marketplace, empowering consumers as they comparison-shop across a full suite of loan and credit-based offerings. LendingTree provides an online marketplace which connects consumers with multiple lenders that compete for their business, as well as an array of online tools and information to help consumers find the best loan. Since inception, LendingTree has facilitated more than 65 million loan requests. LendingTree provides free monthly credit scores through My LendingTree and access to its network of over 500 lenders offering home loans, personal loans, credit cards, student loans, business loans, home equity loans/lines of credit, auto loans and more. LendingTree, LLC is a subsidiary of LendingTree, Inc. For more information go to www.lendingtree.com, dial 800-555-TREE, like our Facebook page and/or follow us on Twitter @LendingTree.