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In the third quarter of 2011, 82 percent of homeowners who refinanced their first-lien home mortgage either maintained about the same loan amount or lowered their principal balance by paying-in additional money at the closing table, according to a report by Freddie Mac. Of these borrowers, 44 percent maintained about the same loan amount, and 37 percent of refinancing homeowners reduced their principal balance.

"Cash-out" borrowers, those who increased their loan balance by at least five percent, represented 18 percent of all refinance loans; the average cash-out share during the 1985-to- 2010 period was 46 percent.

C.A.R.