Considering a Cash-Out? Now is a Great Time as Equity Skyrockets!
Record home price appreciation in the last few years has pushed tappable home equity to new heights!
According to a report published by data vendor Black Knight this week, the third quarter of 2021 saw a nearly $250 billion dollar increase in tappable equity—a record. With record high tappable home equity, now is a great time to consider a cash out refinance to fund those projects or repairs around the house, start an addition, consolidate high interest debts, or whatever you need the extra cash for.
The report from Black Knight also sheds light on the fact that the aggregate total of $9.4 trillion is up an astonishing 32% from the same time last year and nearly 90% higher than the pre-great recession peak in ’06.
That works out to roughly $178,000 available to the average homeowner in tappable equity!
Did you know you can use a cash-out refinance as a way to put a down payment on an investment property? With Griffin Funding’s DSCR no income investment property loan, you don’t have to show your personal income or tax returns. Qualify simply off the rental income of the investment property.
Overall, mortgage holders withdrew more than $70 billion in equity in the third quarter, equivalent to just 0.8% of available equity entering the quarter, the report said. Year-over-year, more than a million cash-out refis were originated. It’s also notable the the share of cash-out refinances is poised to rise further if mortgage rates continue to trend upward in the next few quarters.
Some cities with the highest concentration of tappable equity in the nation are Los Angeles, San Francisco, San Jose and Seattle. Additionally, the report by Black Knight said that the monthly principle and interest payment to purchase an average-priced home with 20% down increased by close to 25% since the start of 2021.
The shortage of housing inventory continues to put pressure on home prices, and they will likely continue to rise in the foreseeable future. Even if home prices hold steady, a rise in 30-year rates to 3.5% will result in the tightest affordability since 2009.
Here are just a few ways to utilize a cash-out refinance:
If you haven’t already considered a cash-out refinance, now is a great time while rates are historically still very low.
Griffin Funding is licensed in: Arizona, California, Colorado, Florida, Georgia, Hawaii, Idaho, Maryland, Michigan, Montana, Tennessee, Texas, Virginia, and Washington! Specializing in VA and Non-QM loans, we have access to wholesale rates and offer to beat or match any rate on the market!
Want to learn more? Contact us online or call us at (855) 394-8288 to receive your no-obligation consultation.