article thumbnail

Home equity loan vs. HELOC – What’s the difference?

Housing Wire

While mortgage rates are high and economic uncertainty looms, there is good news for borrowers who already have a mortgage and may be looking to tap into their equity. The average mortgage holder is up by more than $92,000 compared to the start of the pandemic. What is a home equity loan? Pros and cons.

Equity 531
article thumbnail

Pennymac rolls out new home equity loan product for broker partners 

Housing Wire

California-based Pennymac Financial Services ’s broker division, Pennymac TPO , launched a home equity loan product as tappable home equity nears its 2022 peak. A home equity loan — also known as a second mortgage — enables a homeowner to borrow money by leveraging equity in a home.

Equity 378
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

High mortgage rates sideline homeowners from tapping home equity: ICE

Housing Wire

Rising home prices have pushed the third quarter’s tappable home equity amount near its 2022 peak, but interest rates are making homeowners reluctant to extract that wealth. Indeed, in recent quarters, equity withdrawal rates have been running at less than half their long-run averages. Borrowers withdrew a record $104,000 on average.

Equity 434
article thumbnail

Home-equity lending blossomed in 2023

Housing Wire

Home-equity lending overall found its wings in 2023 as a number of independent mortgage banks ramped up product lines over the course of the year — despite a bump in the road in the third quarter when mortgage rates surged past 7%. Market indicators so far appear tentatively promising. from $490 billion in the second quarter.

Equity 448
article thumbnail

Home equity remained near historic highs to end 2023

Housing Wire

homeowners with mortgages saw their home equity increase by 8.6% trillion, according to CoreLogic ’s newest homeowner equity report. Net homeowner equity totaled more than $16.6 By extension, at 43%, the average loan-to-value ratio of U.S. In January, home equity increased by 13.2% million homes or 2.1%

Equity 453
article thumbnail

What are the potential home equity and tax strategies for wealthy seniors?

Housing Wire

Seniors could choose to employ home equity through a reverse mortgage or other equity-tapping product to manage a series of expenses in retirement , but when it comes to managing their tax burden , it can get more complicated. But some financial advisers are hesitant to recommend the strategy.

Equity 343
article thumbnail

Once at the fringes of housing finance, home equity investment companies look to grow their stake

Housing Wire

“What if homeowners could tap into home equity without taking on debt?” When Hometap launched in 2017, the Boston-based fintech offered an unorthodox answer to this question for homeowners looking for an alternative to a loan. The annual investment volume in the U.S. The annual investment volume in the U.S.

Equity 404