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All locked up! Homeowners struggle to tap equity

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Despite holding trillions of dollars in home equity, U.S. homeowners are struggling to tap into it according to a report published by Point, an alternative equity release company.

 

“Point’s newest analysis shows an alarming trend—many U.S. homeowners don’t have a clear path to accessing their home equity. Riding the wave of rising real estate values, homeowners in the U.S. are sitting on near-record-high levels of home equity”, says the report.

 

Homeowners have been paying down existing home equity loan balances, dropping 48% from its peak in 2009. However, those wishing to tap into their equity find themselves facing significant headwinds. One is tightening credit standards from banks and lenders reducing the number of qualified applicants. In addition to stricter lending guidelines, a steady series of interest rate hikes by the Federal Reserve made home equity loans less attractive for potential borrowers.

 

Point’s publication notes that a homeowner who purchased their home in the summer of 2020 for $310,000  would likely see their home’s value climb to…

 

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Editor in Chief: HECMWorld.com
 
As a prominent commentator and Editor in Chief at HECMWorld.com, Shannon Hicks has played a pivotal role in reshaping the conversation around reverse mortgages. His unique perspectives and deep understanding of the industry have not only educated countless readers but has also contributed to introducing practical strategies utilizing housing wealth with a reverse mortgage.
 
Shannon’s journey into the world of reverse mortgages began in 2002 as an originator and his prior work in the financial services industry. Shannon has been covering reverse mortgage news stories since 2008 when he launched the podcast HECMWorld Weekly. Later, in 2010 he began producing the weekly video series The Industry Leader Update and Friday’s Food for Thought.
 
Readers wishing to submit stories or interview requests can reach our team at: info@hecmworld.com.

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