Subprime refinancing
Subtitle: equity extraction and mortgage termination
By: by Souphala Chomsisengphet and Anthony Pennington-Cross.
Contributors: Pennington-Cross, Anthony.; Federal Reserve Bank of St. Louis.
Series: Working paper -- 2006-023A; Working paper (Federal Reserve Bank of St. Louis : Online) -- 2006-023A.
Publisher: Federal Reserve Bank of St. Louis
Published: 2006
Place of publication: [St. Louis, Mo.]
Language: eng
Format: Electronic resource
Subjects: Subprime mortgage loans -- United States.
Description: "This paper examines the choice of borrowers to extract wealth from housing in the high-cost (subprime) segment of the mortgage market while refinancing and assesses the prepayment and default performance of these cash-out refinance loans relative to the rate refinance loans.  Consistent with survey evidence the propensity to extract equity while refinancing is sensitive to interest rates on other forms of consumer debt.  After the loan is originated, our results indicate that cash-out refinances perform differently from non cash-out refinances.  For example, cash-outs are less likely to default or prepay, and the termination of cash-outs is more sensitive to changing interest rates and house prices"--Federal Reserve Bank of St. Louis web site.
Notes: Title from PDF file as viewed on 6/26/2006.

Includes bibliographical references.

Also available in print.

System requirements: Adobe Acrobat Reader.

Mode of access: World Wide Web.