Okay, a little good news for a change.
A CoreLogic report indicates that to date about 9 million current homeowners have regained positive home equity. Residential property owner’s still carrying negative equity is down to about 3.1 million.
Some highlights of the report:
- 635 of homeowners realized a $7.66 billion increase in the last year
- On average, each homeowner saw an equity increase of about $13,400
- Those with negative equity decreased 3% in 2017 Q1 vs. 2016 Q4
This bodes well for housing and mortgage lending. With increased equity, many homeowners may again seek cash out of their homes via equity loans or refinancing to obtain funds to:
- Reduce their current monthly payments;
- Obtain money to pay off other high rate debt like credit cards and student loans;
- Get money to make needed upgrades and repairs to prepare for resale.
Other reports show that mortgage rates presently remain low, mortgage money is readily available, and there are plenty of lenders with the products and programs to meet the borrower’s needs.
So, here’s an opportunity to pick up some low hanging fruit for either some quick refi’s, equity loans, or financing to new move up buyers.
With the increased equity, some homeowners may be considering a move up to nicer/bigger homes. All they need to know is that they will qualify for the new loan. Be there to let them know for sure.
Lenders and their LO’s should be marketing the options current owners have and the advantages of their increased equity to their Realtor contacts and consumers.
Rates won’t stay low forever. Current homeowners need to strike now, while the iron is hot and rates are still low.
This is the chance for many of those who now have regained lost equity to make the move to better their homeownership position. Such opportunities don’t come along often enough and don’t stay around for long.
Lend responsibly, my friends.