Tempted to turn your home's soaring equity into cash? Don't do it lightly: Fannie Mae chair

National home prices have grown by about 15% over the past year, giving homeowners greater equity and financial security. 

At the same time, rising prices have helped drive an increase in cash-out refinancing, where homeowners refinance to a lower mortgage interest rate while also taking money out by tapping into their increased home equity. In fact, according to Fannie Mae and Freddie Mac data, in 2020 approximately $185 billion of equity was extracted through cash-out refinances – the most since 2007, right before the Great Financial Crisis.