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Mortgage refinancers look for quick cash

Home-mortgage refinancers weren't just looking for lower interest rates last year -- they were looking for quick cash. Nearly 45% of borrowers obtained what are called cash-out refi's, borrowing more than needed and pocketing, or spending, the extra money, according to economist Scott Anderson at Wells Fargo & Co.

The average amount of extracted cash in 2001-'02 was ,700, and nearly 40% of refi customers took out more than ,000, the Minneapolis-based bank economist said. A borrower survey showed that 35% used the cash to pay for home improvements, 26% repaid other debts, 16% bought consumer goods, 11% made financial investments and 10% made real estate or business investments, while 2% paid off their tax bill.

Nearly every borrower got a much better rate -- an average 1.83 percentage points lower, Anderson reported in his company's Jan. 27 newsletter. But 74% lengthened their loan term and only 48% wound up with a lower monthly payment.

This year, Anderson predicts a mortgage refinancing market about half of last year's estimated .4 billion.

Remodeling business improves through year

Last year's local remodeling business ended better than it started for most companies, a Milwaukee/NARI Home Improvement Council Inc. survey indicates.

Of 60 member businesses reporting on the year's trade, 55% said business improved through the year, 18% said it was flat, 15% reported a decline and 12% didn't answer the question, the Wauwatosa-based trade group reported. Results were provided without full data or firm identities, in what the council said will be a quarterly market report.

Many reported jobs were smallish: 48% were priced ,000 or less, 10% ranged from ,000 to ,000 and 42% cost more than ,000. About 8 in 10 companies surveyed work in the five-county area of Milwaukee, Waukesha, Washington, Ozaukee and Racine counties.

Homeowner insurance rates rise sharply

Homeowners insurance rates posted double-digit gains last year, due to a spate of heavy claims nationwide and insurers' lackluster investment performance, reports the Wisconsin insurance commissioner's office.

Rates climbed an average 15.1% among Wisconsin's top 10 insurers, in a range from 3.9% to 25.3%, regulators said. Their advice to homeowners suffering premium shock: check the effect of raising claim deductibles and price-shop among this state's 200-some insurance companies. For those whose policies were canceled and can't find a replacement, the agency suggests joining the Wisconsin Insurance Plan, which offers minimal coverage, typically at pretty steep prices.

Related links:

1. Householders rush to cash in on bargain rates: REMORTGAGING: Sabuhi Mir looks at those people releasing equity, thanks to historically low interest levels, and what they are doing with the money
2. Householders rush to cash in on bargain rates: REMORTGAGING: Sabuhi Mir looks at those people releasing equity, thanks to historically low interest levels, and what they are doing with the money
3. Householders rush to cash in on bargain rates: REMORTGAGING: Sabuhi Mir looks at those people releasing equity, thanks to historically low interest levels, and what they are doing with the money