$17 Trillion in Home Equity Is at 'Record Amounts.' Experts Say Now May Be a Good Time to Tap It

Core Insights - American homeowners currently hold a record $17.6 trillion in home equity, with approximately $11.5 trillion classified as tappable equity that can be borrowed while maintaining at least 20% equity in the home [1] - Nearly 50 million homeowners have access to some level of equity, and borrowing costs for home equity products have decreased from recent peaks, with average home equity loan rates just under 7% [2] - There is an increasing trend of homeowners inquiring about tapping into their home equity through various products such as HELOCs, home equity loans, or cash-out refinances [3] Group 1: Home Equity Trends - Homeowners are increasingly recognizing that ultra-low mortgage rates from the COVID-19 era are no longer available, prompting them to explore loans that supplement rather than replace existing mortgages [4] - Fixed-rate home equity loans are becoming a popular option, allowing homeowners to receive a lump sum and repay it over a set term while keeping their original mortgage intact [4] Group 2: Lending Products - Rocket Mortgage is focusing on home equity loan products designed as sidecar loans, enabling borrowers to access a lump sum repayable over 10 or 20 years, with separate monthly payments from their first mortgage [5] - Qualified borrowers can tap into their equity up to combined loan-to-value ratios near 90%, depending on their credit profile and property details, which is significant for those with large remaining balances at low rates [5]