Studies from Federal Reserve Bank of Philadelphia in the Area of Investment Reported (Not Cashing In On Cashing Out: an Analysis of Low Cash-out Refinance Rates): Investment

2026 JAN 27 (NewsRx) -- By a News Reporter-Staff News Editor at Daily Real Estate News -- Investigators publish new report on Investment. According to news reporting out of Philadelphia, Pennsylvania, by NewsRx editors, research stated, “Lowering a borrower’s interest rate is one of the most effective ways to reduce a borrower’s debt burden.”

Our news journalists obtained a quote from the research from the Federal Reserve Bank of Philadelphia, “Mortgage refinancing offers a chance to shift debt balances from high-interest loans into a low-interest mortgage through ‘cashing out’ some of the home’s equity. Using anonymized data on mortgage refinancing behavior, we find that over half of borrowers with high-interest loans and available home equity do not take advantage of their cash-out opportunities.”

According to the news editors, the research concluded: “While the cash-out ‘surcharge’ can rationalize this pattern, we leverage a policy change at Fannie Mae that eliminated this surcharge for student-loan borrowers and find that the presence of a student loan does not significantly affect borrowers’ propensity to cash out.”

This research has been peer-reviewed.

For more information on this research see: Not Cashing In On Cashing Out: an Analysis of Low Cash-out Refinance Rates. Real Estate Economics, 2026. Real Estate Economics can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Wiley-Blackwell - http://www.wiley.com/; Real Estate Economics - http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1540-6229)

Our news journalists report that additional information may be obtained by contacting Mallick Hossain, Federal Reserve Bank of Philadelphia, Philadelphia, PA 19106, United States. Additional authors for this research include Igor Livshits and Collin Wardius.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1111/1540-6229.70031. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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