A national mortgage survey of homeowners across all 50 states measures how often buyers consider cash-out options, what motivates refinance borrowers to tap their equity, and how home equity behavior differs by region and home value tier.
Updated: March 16, 2026
Cash-Out Consideration at Purchase
Home equity is one of the primary financial benefits of homeownership. Yet how actively homeowners think about and use that equity varies considerably depending on where they live and how much their home is worth.
According to our national mortgage survey of homeowners across all 50 states, 23.8% of purchase borrowers say they considered a cash-out option at the time of their home purchase. That figure rises sharply with home value and varies by nearly 15 percentage points between the least and most equity-active regions of the country.
| Segment | Considered Cash-Out at Purchase |
|---|---|
| All purchase borrowers (national) | 23.8% |
| Under $300,000 buyers | 18.0% |
| $300,000-$600,000 buyers | 23.1% |
| Over $600,000 buyers | 30.3% |
The pattern is consistent with what you would expect: buyers of higher-value homes have more equity to consider tapping. But the regional picture tells a more interesting story, one that goes beyond home prices alone.
Cash-Out Behavior by Region
Northeast and West homeowners consider cash-out options at nearly double the rate of Midwest homeowners. The gap is consistent across both purchase and refinance borrowers, and it holds at every home value tier.
| Region | Cash-Out Consideration at Purchase | Cash-Out as Refi Motivation | Would Consider Cash-Out Again (Refi) |
|---|---|---|---|
| West | 30.2% | 22.5% | 35.4% |
| Northeast | 29.1% | 21.8% | 34.2% |
| South | 19.1% | 14.3% | 22.4% |
| Midwest | 17.6% | 13.1% | 20.6% |
The West leads on cash-out consideration at purchase (30.2%) and as a refinance motivation (22.5%), with the Northeast close behind. Midwest homeowners are the least likely to consider or act on cash-out options at every stage of the homeownership journey, with consideration rates roughly 12 percentage points below the West.
Higher median home values in coastal markets explain part of this gap. But the regional breakdown by home value tier shows the gap persists even when controlling for price. A Midwest homeowner with a home above $600,000 considers cash-out at a rate of 22.4%, while the same buyer in the West does so at 38.4%. The difference is behavioral and informational, not purely a function of equity available.
Cash-Out Behavior by Home Value Tier
Cash-out consideration increases steadily with home value at both the purchase and refinance stage, reflecting the greater equity available to higher-value homeowners.
| Home Value Tier | Cash-Out at Purchase | Cash-Out as Refi Motivation |
|---|---|---|
| Under $300,000 | 18.0% | 12.3% |
| $300,000-$600,000 | 23.1% | 17.3% |
| Over $600,000 | 30.3% | 23.8% |
The regional picture within each tier is where the most meaningful variation appears. For entry-level buyers under $300,000, cash-out consideration ranges from 13.3% in the Midwest to 22.8% in the West. For luxury buyers above $600,000, it ranges from 22.4% in the Midwest to 38.4% in the West. The regional behavior gap widens as home values rise.
| Region | Under $300k | $300k-$600k | Over $600k |
|---|---|---|---|
| West | 22.8% | 29.2% | 38.4% |
| Northeast | 22.1% | 28.2% | 37.1% |
| South | 14.5% | 18.5% | 24.3% |
| Midwest | 13.3% | 17.0% | 22.4% |
Cash-Out as a Refinance Motivation
Among homeowners who have refinanced, cash-out equity access is the second most common primary motivation after getting a lower rate, and it nearly ties with shortening the loan term.
| Primary Refinance Motivation | Share of Refi Borrowers |
|---|---|
| Lower rate | 21.3% |
| Shorten loan term | 19.5% |
| Cash-out equity | 17.8% |
| Debt consolidation | 16.4% |
The four motivations are closely bunched, with no single driver dominating. This challenges the assumption that refinancing is primarily about chasing a lower rate. For nearly a third of refinance borrowers, the primary reason to refinance has nothing to do with rate at all.
Cash-out motivation at refinance is highest among homeowners in the West (22.5%) and Northeast (21.8%), consistent with the higher equity positions in those markets. It is also highest among homeowners with properties above $600,000 (23.8%), where the available equity makes a cash-out refinance a more meaningful option.
Among borrowers who have already done a cash-out refinance, 27.9% say they would consider doing so again, rising to 35.4% in the West and 34.2% in the Northeast.
How Much Rates Need to Drop Before Homeowners Refinance
Not all homeowners are equally willing to refinance, even when rates move in their favor. The survey asked homeowners how much rates would need to drop before they would consider refinancing.
| Rate Drop Required | Share of Homeowners |
|---|---|
| 0.5% drop would trigger refinance | 21.4% |
| 1.0% drop would trigger refinance | 25.8% |
| 2.0% drop would trigger refinance | 24.4% |
| Not interested regardless of rate drop | 24.4% |
Roughly a quarter of homeowners (24.4%) say they are not interested in refinancing regardless of how much rates drop. Among buyers aged 55+, that figure drops to just 7.0%, suggesting older homeowners are actually among the most open to refinancing when the right conditions arise. The highest disinterest comes from buyers aged 45-54 at 38.6%.
For homeowners weighing whether a refinance makes sense, the 1% threshold is the most common trigger point. Just over a quarter of borrowers (25.8%) say a 1-percentage-point rate reduction would motivate them to refinance, making it the single most cited threshold in the survey.
Home Equity Access Options for Homeowners
Understanding your equity is the first step. Knowing your access options is the second. Three products allow homeowners to tap equity built up in their home, and each serves a different need.
- Cash-out refinance. Replaces your existing mortgage with a new, larger loan. You receive the difference between the new loan amount and your current balance as cash. Best suited for homeowners who can secure a rate close to or below their current mortgage rate.
- Home equity loan. A second loan against your home, separate from your mortgage. Typically fixed rate with predictable monthly payments. Useful when you want a lump sum and prefer not to disturb your existing mortgage rate.
- Home equity line of credit (HELOC). A revolving credit line secured by your home equity. Variable rate, draw as needed up to your credit limit during the draw period. Useful for ongoing expenses or projects where the total cost is uncertain upfront.
The survey data shows that homeowners in the West and Northeast are significantly more likely to explore these options than those in the Midwest and South. If you own a home in an interior market and have not spoken with your lender about your current equity position, it is worth starting that conversation regardless of whether you plan to refinance.
Data sourced from the MFP National Mortgage Survey, conducted across all 50 states and Washington D.C. Margin of error +/-5% at 96% confidence for large states. Full methodology and citation guide available at myfinancialprograms.com/research/mortgage-satisfaction/.