Homeowners Cash Out Equity at Record Pace

U.S. homeowners will turn a record $204 billion of real estate equity into cash this year by refinancing mortgages at higher balances to tap gains in rising property values, a report showed.

“Cash-out refis,” in which homeowners borrow more money as the value of their property rises, will climb from $142 billion in 2004 and $146.9 billion in 2003, according to a report issued by McLean, Va.-based Freddie Mac.