Recent news has homeowners sitting on trillions in cash—$5.5 trillion in equity before they even get to 80% loan-to-value against the home, according to Black Knight Data and Analytics.
Many in the industry see it as an equity loan or line of credit mortgage opportunity—and it certainly is. However, it’s also an opportunity for homeowners to upgrade, or maybe downsize and invest. It is all about individual perspective, goals, and place in life. Whatever that place may be, it is an opportunity for a listing, or maybe a listing and purchase.
Getting the homeowners that have all this equity available to actually use it to their advantage can be a struggle; there is a lot to overcome. Whether they would ultimately be looking to upgrade or downsize, the lack of inventory can have some afraid they might not find what they are looking for. Those that would consider an upgrade would have to contend with affordability of the new property.
By partnering with a mortgage lender willing to take the time to explore all financing opportunities available to these homeowners, you might just get someone to list their home with you and start looking for something else. Many people don’t realize what they have for equity, or they aren’t aware of the opportunities equity can provide in certain circumstances.
With your incredible insight into local real estate markets, and Embrace’s array of loan products to meet any need, homeowners looking to move are lucky to have access to a wealth of information when exploring financing opportunities.