Equity-rich homeowners in the housing market malaise still have plenty of options available.

American homeowners have a record $16 trillion in home equity, with the average homeowner having $299,000 in equity, $193,000 of which is tappable while still maintaining a 20% equity stake. Mortgage holders gained $1.6 trillion of equity in 2023. HELOC rates range from 9% to 12%, while credit card interest rates are at 27.89%. Household debt is at $17.5 trillion. Some homeowners use equity for ADUs, home improvements, debt consolidation, or to buy another property. HELOC lending fell in the fourth quarter of 2023. Qualifying for HELOCs can be difficult, with some lenders requiring a DTI of 43% or lower. The 30-year fixed rate mortgage is at 6.79%. Some lenders are offering cash-out HELOCs up to 95% of the property value. Some programs allow for qualification based on bank statement deposits or minimum interest-only payments. For those 55 and over, a reverse mortgage second loan is available.

– Record $16 trillion in home equity
– Average homeowner has $299,000 in equity
– Mortgage holders gained $1.6 trillion in equity in 2023
– HELOC rates range from 9% to 12%, credit card interest rates at 27.89%
– Household debt at $17.5 trillion
– Some homeowners use equity for ADUs, home improvements, debt consolidation, or to buy another property
– HELOC lending fell in Q4 2023
– Qualifying for HELOCs can be difficult, with some lenders requiring DTI of 43% or lower
– 30-year fixed rate mortgage at 6.79%
– Some lenders offering cash-out HELOCs up to 95% of property value
– Some programs allow for qualification based on bank statement deposits or minimum interest-only payments
– Reverse mortgage second loan available for those 55 and over



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