Despite three years of a solid recovery in home prices, a surprising number of homeowners don't realize what they've gained.
Most underestimate what their home is
worth and, consequently, the amount of home equity that they could draw
upon. Even more striking, just more than half of homeowners with a
mortgage don't expect to gain any equity in 2016, despite rising home
prices. It may be why home equity lines of credit are far less popular
today than they were even before the housing boom.
Despite three years of a solid recovery in home prices, a surprising number of homeowners don't realize what they've gained.
Most underestimate what their home is worth and, consequently, the amount of home equity that they could draw upon. Even more striking, just more than half of homeowners with a mortgage don't expect to gain any equity in 2016, despite rising home prices. It may be why home equity lines of credit are far less popular today than they were even before the housing boom.
"Homeowners who bought during the housing boom are regaining equity many thought was lost forever, yet too many are not aware of the equity they have gained or they are unclear about how to determine changes in their equity," said Bryan Sullivan, chief financial officer at loanDepot, an independent, nonbank lender.
Fifty-seven percent of homeowners said they believe their home value has improved in the last three years, but the majority, 80 percent, underestimated the amount of value it has gained, according to a new survey conducted by Omniweb and commissioned by loanDepot. The survey was based on interviews with 1,000 borrowers, split evenly between men and women.
There are MSM cheerleader articles that can have serious repercussions. Consumers during the economic mess a few years back were blamed for spending too much, having too much debt and so forth. Now, with perhaps a bit of breathing room, real or not, they're urged to let it rip again.
As we always say, you gotta love it.
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