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 like 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 best mortgage lender in Texas, John Schutze’s Texas Loan Experts Team in Austin at (512) 775-6820 or visit JohnSchutze.com to apply now. Texas Loan Experts has the lowest rates on Conventional, FHA, Mortgage Refinances, Jumbo Loans, Debt Consolidation Loans, Rate and Term Refinances, Cash Out Refinances, and HARP Loans. We are also the exclusive home for Hero.Loan VA Mortgages and The Bank Statement Mortgage. We will come to you to close your loan. Nobody gets lower mortgage rates on better loans than Texas Loan Experts.
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The John Schutze Team
Our customer first approach to mortgages is what separates us from all of the other banks and mortgage companies. Our team will walk you through the process to ensure that your loan closes in a very timely manner. Our competition may think our philosophy on face-to-face customer service is excessive but our clients sure do appreciate it.
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Our team has set the standard in the mortgage industry. We hire only the best in the business. Our knowledge and experience is unmatched. We continue to train and study new mortgage loan programs to make us the best choice for mortgage refinancing and home purchases, debt consolidation, Conventional, FHA, HARP, VA, and Jumbo Loans available.
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We provide you with several different mortgage loan options to ensure that you find the mortgage loan program that best fits your needs. Because of the volume of mortgage loans our team closes and the great relationships we have forged within our industry, we’re able to offer the most competitive mortgage interest rates to our clients.
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As a direct mortgage lender, our process has been streamlined from start to finish. Having the entire mortgage loan process contained under one roof allows us to quickly and efficiently close your loan. Our ability to use the newest mortgage loan products and underwrite our own files, allows us to approve loans that our competitors can’t.