'Cash-in' refis growing in popularity

[Ted Harris]

Wow, who would have thought this 3 years ago ....from LA Times:

Thinking of cashing out some equity when you refinance your mortgage? Sure, that used to be what millions of homeowners did when they needed extra money ....But now get ready for the post-boom, post-crash trend: "cash-in" refis -- the opposite of cash-outs. From 2005 to the third quarter of 2009, according to Federal Reserve estimates, American homeowners lost $7 trillion in equity -- an unprecedented evaporation of household wealth. Almost nobody was spared. Now the pendulum in consumer psychology appears to be swinging toward reduction of household debt -- whether on credit cards or mortgages.

This is a good trend, imo ... here's the full article link:

http://www.latimes.com/classified/realestate/news/la-fi-harney7-2010feb07,0,4396828.story