Home price growth in recent years has left 47.2% of US homeowners in an equity-rich position in Q1 2023, meaning their home equity is worth at least double their loan amount. This is according to the latest report from Attom Data Solutions, a real estate data provider. This is down slightly from the peak of the market, but it’s still higher than the 44.9% reported year ago in Q1 2022.
1. WHAT DOES THIS MEAN FOR YOU?
The amount of equity you have in your home depends on your home value: Home Value MINUS Mortgage Balance = Home Equity. According to the data in the report, 47.2% of homeowners still have home equity that is double their mortgage balance.
- If you don’t own a home: don’t miss your chance to benefit. The growth in home prices is expected to continue this year and next year because housing demand is likely to remain high and housing supply is likely to remain low.
- If you do own a home: you may want to consider accessing your equity by selling your home or doing a “cash-out” refinance.
There are three ways to access your home equity:
- Sell Your House: you could use the additional equity as a down payment to purchase a new house that may be more suitable for your current situation.
- Get a Home Equity Loan or Line of Credit: you could apply for a home equity loan or line of credit to borrow against the additional equity in your house.
- Refinance Your Mortgage: you could apply for a “cash-out refinance” to tap into the equity of your house and borrow against the additional equity you’ve gained.
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