Central Ohio was among the top 50 metropolitain areas where homebuyers were likely to tap into their home equity when refinancing.
Columbus ranked 50th among 100 metro areas where more homebuyers were doing a cash-out refinancing, according to LendingTree, an online marketplace for loans.
Instead of refinancing a home to get a lower interest rate, homeowners utilize cash-out refinacing to receive cash from the difference of a new mortagage balance that's larger than the old one.
Sixty-one percent of refinance mortages were cash-out borrowers in Columbus with the average loan amount at $172,103.
It's a way to satisfy big expenses such as home improvements, improve one's debt profile and have a more stable rate, according to a report from Bankrate.com.
But it could lead worse terms, place homes at greater risk and the process can be cumbersome.
Cash-out refinance loans have increased 62 percent of all refinances in the first quarter this year compared with 54 percent in the first quarter of 2017, according to LendingTree, which analyzed mortgage requests and offers for refinance borrowers between March 1, 2017, and March 1, 2018.
Also on the list, Cleveland ranked No. 66 with 58 percent of refinanced mortgages were cash-out borrowers with the average loan amount at $155,220.
Cincinnati ranked No. 70 on the list with cash-out refinanced mortgages make up 58 percent of all such mortgages with the average loan amount at $174,996.
The top three cities with the highest share of cash-out borrowers were Albayn, N.Y., (73 percent); Portland, Ore., (72 percent); and Cape Coral, Fla., (72 percent).
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