Home values have risen sharply and tappable equity in your home is right now at an all-time high, according to Black Knight. There are $6.3 TRILLION dollars available in mortgage equity for homeowners to refinance their mortgage with right now.
The total rose by $335 billion in the last quarter. Tappable equity is the amount of equity in the home that a homeowner can borrow against before they run into the 80% loan-to-value limit that lenders use. This record high is more than 26% over the old peak during the housing bubble of 2006.
According to Black Knight’s research, the average homeowner that has tappable equity is holding onto $140,000 that they can borrow against. Over half have interest rates nearly a point higher than what’s available today, and have great credit, with scores at or over 760.
Tappable equity is a great thing to have in your home. You can use that equity for all kinds of purposes. Cash-Out Refinances are a great way to make your high-interest credit cards go away. You can use that equity to make improvements to your home or much-needed repairs.
When mortgage rates drop as they have been, it gives homeowners options that they may not have had before. It allows home buyers to make bigger offers on houses, driving up the price. The best part for homeowners there is that it raises the price for “comparables”. These are houses near you that compare to your house. This has the awesome effect of raising the value of your home by comparison since that value is seen against the comparable homes around you.
All this does is give you MORE equity to work with, putting you further away from that 80% LTV mark that you want to avoid and giving you more money in a cash-out refinance.
Whether you want to buy or refinance, low-interest rates make it easier to do, and these rates look like they will stay low through the end of the year and into the first quarter of next year. That doesn’t mean it’s time to wait though. Lines will start forming as people see that this may be a historic opportunity to put real money in their pockets and get their loans locked.
You need to apply online with a strong mortgage lender that will get you locked quickly before rates change or the market flips. Using our 5-Minute Loan Application, you can get in the front of the line and move your loan through the queue quickly while uploading all of your documents securely and quickly.
Call The Home Loan Expert Team in St. Louis at (314) 781-9700, Chicago at (773) 770-4727, Indianapolis at (317) 550-1515, and Nashville at (615) 810-8555. You can always apply online with our 5-Minute Loan Approval at hero.loan for your VA Loan, and www.thehomeloanexpert.com for your other mortgage needs, and we’re also open on Saturdays and will come to you to help close your loan. We work hard to make it easy on you. Nobody gets lower rates on better loans than The Home Loan Expert, Ryan Kelley, why go anywhere else?