With $34.9 trillion in home equity available, CEO says equity products critical for brokers
Educating homeowners
Matt Schulz, chief consumer finance analyst at LendingTree, said even states with limited income have a lot of tappable equity.
“Even at the bottom of the list, you’re still talking about median home equity of $130,000,” Schulz told Mortgage Professional America. “And that’s real money for anybody. The places at the bottom — West Virginia, Arkansas, Mississippi, Kentucky — are places where income levels aren’t necessarily that high, and maybe even more importantly, their credit may not be that great. So having $130,000 of home equity is a pretty big deal because it gives you options in terms of credit.”
Schulz said the elevated rate environment has pushed home equity into an unusual position, making it more necessary and more accessible at the same time.
Because rates have stayed high, homeowners are not selling. Their equity is compounding, and with consumer credit card debt near record levels, more of those homeowners have a specific need that equity can address.
He said the most important job lenders and brokers have in this environment is making sure borrowers understand what they have and how to use it responsibly.
