The amount of equity homeowners have built up in their houses continues to soar.
In fact, homeowner equity that could be accessible across the country has hit a record high of $6.3 trillion, according to Black Knight. In the second quarter of 2019, the amount of equity homeowners could borrow jumped $335 billion.
Breaking it down further, Black Knight states that the average homeowner who has equity they could borrow against, has on average, $140,000 they could tap into.
If you live in Oahu and are thinking about utilizing your equity, there may be multiple options available to you. A home equity loan allows you to essentially take out a second mortgage that would have its own monthly payment. A home equity line of credit, often referred to as a HELOC, is a second mortgage as well, but it comes with two stages: a stage in which you can draw the money and a stage in which you make repayments.
A cash-out refinance can be used to pay off an existing mortgage and the money left over can be utilized as equity.
Refinancing can be a good way to reset the terms of your mortgage and help you access some of this equity you could have available. Bringing down your monthly payment and/or paying down existing debt could help provide you the financial cushion you have been looking for.
If you have any questions about what opportunities you may have to take advantage of this window of opportunity in the Hawaii market, don’t hesitate to contact us today. We will learn what your financial goals are and try to help you achieve those goals.