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Here’s how much equity the average homeowner has now
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If you’re a homeowner, chances are you have at least some home equity to work with right now. Your home equity is the percentage of your home’s value that you own free and clear. And, if you tap into this equity, you may be able to borrow money at a competitive interest rate compared to other financing options.
And, with home values as high as they are, you may have more equity than you think. But how much equity does the average homeowner have right now?
Find out your top home equity borrowing options now.
Here’s how much equity the average homeowner has now
According to the February 2024 ICE Mortgage Monitor report, the average homeowner currently has about $299,000 in home equity, about $193,000 of which is tappable home equity. Keep in mind that the above is the average equity American homeowners have, so yours may be higher or lower depending on a range of factors.
“Mortgage holders gained $1.6T in equity in 2023 to reach an aggregate of $16T, the highest year-end total on record,” the ICE Mortgage Monitor report states.
It’s also worth noting that if you borrow against your home’s equity, you typically can’t tap into 100% of it. Lenders generally limit the amount you can borrow to between 80% and 90% of your home equity. So, right now, the average homeowner can safely tap into $193,000 of their equity “while still maintaining a healthy 20% equity stake,” according to the ICE Mortgage Monitor report.
Learn more about your home equity borrowing options today.
3 ways to tap into your home equity
There are multiple ways to tap into your home equity. Some of the more common ways to tap into your home’s equity include:
A home equity loan
A home equity loan, also known as a second mortgage, lets you tap into your home’s equity with a lump-sum loan. These loans are secured by your home as collateral and typically come with fixed interest rates and minimum payments that you’ll make over several years.
Thanks to the fixed-rate nature of home equity loans, they can be a smart choice if you know how much money you need and want consistent monthly payments. But, they may not be the best option if you’re unsure of how much money you need in total or if you want a chance to get a lower rate if interest rates drop in the future.
A HELOC
A home equity line of credit (HELOC) allows you to borrow from your home’s equity with a line of credit. This starts with a draw period in which you can borrow against your home equity as needed (up to your credit limit). In most cases, you’re only required to make interest payments during that draw period, which typically lasts several years. Following the draw period, the repayment period begins, which is when you make payments toward interest and the principal.
HELOCs typically come with variable interest rates, which could be beneficial right now, as experts expect interest rates to start falling later this year. If rates decline over time, the rate on your HELOC would likely follow suit, meaning you’d pay less in interest on the money you borrow.
And, HELOCs also give you flexibility in terms of borrowing, which could come in handy if you don’t know how much money you need. On the other hand, if interest rates go up in the long run, your HELOC rate will likely follow, so you could end up paying more in interest than you would with a fixed-rate home equity loan.
A cash-out refinance
You also have the option to take advantage of a cash-out refinance. With this type of loan, you refinance the mortgage on your home and borrow money from your equity in the process. Unlike a home equity loan or HELOC, a cash-out refinance replaces your current mortgage with a new mortgage loan with a new rate and new terms. So, this may be a good fit if mortgage rates are lower than what you currently have on your home.
Compare your home equity borrowing options now.
The bottom line
The average homeowner currently has a sizable amount of home equity to borrow from when they need to pay off high-interest debt, fund a small business or cover other expenses. And, in many cases, you can tap into your home’s equity with a much better rate than you’d get with another type of loan. So, if you need to borrow money and have equity in your home, consider taking advantage of a home equity loan, HELOC or cash-out refinance today.
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Homicide investigation launched after missing soldier Sarah Roque found dead in trash bin at Army base in Missouri
A person of interest is in custody and a homicide investigation has been opened in connection with the death of a soldier stationed at Fort Leonard Wood in south-central Missouri, authorities said.
The body of Sgt. Sarah Roque, 23, of Ligonier, Indiana, was found Tuesday inside a trash bin. She had been reported missing a day earlier after she did not report for formation.
No cause of death was released but the Department of Army Criminal Investigation Division said Friday that her death is being investigated as a homicide.
Roque was a mine dog handler and a member of the 5th Engineer Battalion. She enlisted in 2020.
Maj. Gen. Christopher Beck, commanding general at Fort Leonard Wood, said Roque’s body was found in a dumpster on the base near the living quarters for single soldiers, CBS affiliate KRCG-TV reported.
Fort Leonard Wood
Army officials did not release further information about the person in custody or a potential motive.
Roque’s military awards and decorations include the Army Commendation Medal, National Defense Service Medal, Good Conduct Medal and the Army Service Ribbon, the base said.
Maj. Gen. Beck said in a statement that Roque’s death “has caused a tremendous void” at the Army base.
“The Maneuver Support Center of Excellence and Fort Leonard Wood team is deeply saddened by this devastating loss, and we send our deepest condolences to the family, friends and fellow Soldiers of Sergeant Roque,” Beck said in a statement. “Sergeant Roque was a daughter, sister, friend and Soldier who chose to serve our country bravely and honorably.”
President Biden is in Arizona on Friday to issue a formal presidential apology to Native American communities for the atrocities committed against Indigenous people during a 150-year era of forced federal Indian boarding schools. The president’s remarks are scheduled for 1:30 p.m. EDT.
The president chose to speak at the Gila River Indian Community in Arizona, although his apology is for all tribal communities that suffered. From 1819 through the 1970s, the federal government and religious institutions established boarding schools throughout the country to assimilate Alaska Native, American Indian and Native Hawaiian children into White American culture by forcibly removing them from their families, communities and belief systems. Many children who attended these boarding schools endured emotional and physical abuse, and hundreds of them died.
“I’m heading to do something that should have been done a long time ago,” Mr. Biden told reporters before boarding Marine One on Thursday afternoon. “Make a formal apology to the Indian nations for the way we treated their children for so many years.”
Andrew Caballero-Reynolds/AFP via Getty Images
The Department of the Interior, run by the first Native American Cabinet secretary, Deb Haaland, conducted the first-ever federal investigation into the Indian federal boarding school era. It revealed that more than 500 American Indian, Alaska Native and Native Hawaiian children’s deaths occurred at 19 of the federal Indian boarding schools, and identified 53 marked and unmarked burial sites at school sites nationwide. The federal government often contracted with Presbyterian, Catholic and Episcopalian religious institutions to run the schools.
The report found that when children failed to meet standards or broke rules, they were subjected to corporal punishment, including “solitary confinement; flogging; withholding food; whipping; slapping; and cuffing.” Oftentimes, older children were forced to inflict punishment on their younger classmates.
Speaking with reporters aboard Air Force One en route to Arizona on Thursday, Haaland’s voice broke.
“For more than a century, tens of thousands of Indigenous children, as young as 4 years old, were taken from their families and communities and forced into boarding schools run by the U.S. government and religious institutions,” Haaland said. “This includes my own family. For decades, this terrible chapter was hidden from our history books. But now, our administration’s work will ensure that no one will ever forget.”
How to watch President Biden’s remarks at the Gila River Indian Community
- What: President Biden delivers an apology on behalf of the country for atrocities at federal Indian boarding schools.
- Date: Friday, Oct. 25, 2024
- Time: 1:30 p.m. EDT
- Location: Gila River Indian Community in Arizona
- Online stream: Live on CBS News in the player above and on your mobile or streaming device.
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