MANASSAS, Va., June 15, 2022 /PRNewswire/ -- On Monday, US homeowners learned they gained a record-breaking $1.2T in tappable home equity (Nasdaq).1 Additional reporting from the frontlines today adds depth to the new high-water mark.
"Tappable equity" is the borrowing limit set from the net of home value and mortgage balance. Homeowners can tap home equity and convert it to cash through financial tools like a home equity line of credit (HELOC), a home equity loan, or cash-out refinancing. The hashtag has trended on Twitter.
Today, consumer-direct mortgage lender Strong Home Mortgage LLC reports growing demand to its nationwide 1-800-CASHOUT hotline and 1800cashout website domain. "What we're hearing and seeing right now paints a clear picture," says President Mike Peoples. "Significant home equity combined with an increasing need for cashflow makes any conversion between the two very desirable." The hotline and website have been fielding nationwide interest since June 6.
The $207,000 in median tappable equity¹ is good news for US households, and it signals an acceleration in the trend line. In March 2022, the figure was $185,000 (Marketwatch)2 or 21% higher than the $153,000 announced August 2021 (The Mortgage Reports).3
These reports begin to offset what has been a tough last week for American consumers. On Friday, inflation reached a 40-year high at 8.6% (Bloomberg).4 On Saturday, average gas prices hit $5.00 for the first time (Time).5 The Fed has now hiked interest rates three times since March. Jamie Dimon, CEO of JPMorgan Chase, had forecasted an "economic hurricane" (CNBC)6 which now seems prescient.
But converting home equity to cashflow is more than combating economic stressors. It also fuels the popularity of HELOCs.7 "Homeowners view tappable equity as an efficient means to boost renovation budgets and potentially further increase home values," shares Peoples. Remodeling can then capitalize on house hacking, remote work, multigenerational living, and other developing opportunities.
Strong Home Mortgage sees exponential growth ahead for home equity solutions. Peoples adds, "There's no end in sight for tappable equity because home equity loans and helocs empower consumers — and that's not easy to achieve right now."
You can hear the company's radio spots on YouTube, SoundCloud, and ReverbNation.
Strong Home Mortgage is a veteran-owned, consumer-direct lender licensed in 46 US states and Washington DC. Borrowers enjoy single point-of-contact communications during the home mortgage process with fewer handoffs, more availability, better dialogue, and smoother closing. The company averages 4.8 stars across 6,000+ reviews. This includes 97% recommended on Lending Tree where the company is recognized as a "Top 10 Lender in Customer Satisfaction" for three quarters running [Q3/Q4 2021, Q1/2022].
Strong Home Mortgage LLC| NMLS # 1675638|nmlsconsumeraccess.org| Equal Housing Lender| RI Licensed Lender│ MA Lender License # ML-1675638│ AZ Mortgage Banker License # 0950815│ Licensed by NJ Dept. of Banking and Insurance| CA loans made or arranged pursuant to a California Financing Law License
¹ Nasdaq, "US Homeowners Now Have a Record $11 Trillion in Tappable Home Equity," 06/13/22.
2 Marketwatch, "Tappable Home Equity Has Hit a Record High," 03/03/22.
3 The Mortgage Reports, "US Homeowners Have $153K Tappable Home Equity on Average," 08/24/21.
4 Bloomberg, "US Inflation Quickens to 40-Year High," 06/10/22.
5 Time, "Average US Gas Price Hits $5 Per Gallon for First Time," 06/11/22.
6 CNBC, "Jamie Dimon Says 'Brace Yourself' for an Economic Hurricane," 06/01/22.
7 Time, "Home Equity Loans Are Making a Comeback," 06/03/22.
Strong Home Mortgage LLC
9408 Grant Avenue, Suite #302
Manassas, VA 20110 NMLS #1675638
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SOURCE Strong Home Mortgage LLC