Tappable mortgage equity hit all-time high in 2017



The amount of tappable mortgage equity increased in 2017 to an all-time high, according to Black Knight’s latest Mortgage Monitor report. Tappable equity, the amount available for a homeowner to borrow against before reaching a maximum 80% loan to value, increased to an all-time high of $5.5 trillion in the third quarter of 2017. This is up a significant $3 trillion from the market’s bottom in 2012.In fact, currently, more than 80% of all mortgage holders now have available equity to tap via cash-out refinances or HELOCs.Rising home prices have not only decreased tappable equity, but also continued to decrease the number of underwater borrowers. In the third quarter last year, just 2.7% of all borrowers, or about 1.36 million, now owe more on their mortgage than what their home is worth.This is a decrease in negative equity borrowers of a full 37%, or 800,000 borrowers, from the start of 2017.But even as homeowner equity continues to grow, cash-out refinances decreased 14% from the third quarter 2016 to the third quarter 2017 due to rising interest rates. Those who did draw equity via cash-out refinances in the third quarter withdrew an average $68,000 in equity, down slightly from $69,000 the previous quarter.


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Tami L Barber

NMLS #1030737

(423) 943-9269

Encore Lending Group LLC

NMLS #1249911

206 Wesley St, Johnson City TN 37601

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The information contained in this site has been prepared by an independent third party and is distributed for educational purposes only. This is designed to give helpful tips on the mortgage process and is not intended to give legal advice. Information is considered reliable but not guaranteed. This is not a prequalification, preapproval, loan approval or commitment to lend.