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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.
Tickets to the 2024 World Series between the New York Yankees and Los Angeles Dodgers are among the priciest in Major League Baseball history.
The historic matchup between the two storied teams from opposite coasts, who haven’t met in a World Series since 1981, is the driver behind high ticket prices, experts say.
“It is one of the most in-demand World Series we’ve ever seen. Two marquee teams, from two major cities, both with star power brings a ton of demand,” Chris Leyden, director of growth marketing for SeatGeek told CBS MoneyWatch. “It has everything you could ask for form demand perspective, and we are seeing that push up ticket prices.”
The first game of the series will take place in Dodger Stadium in Los Angeles, at 8:08 ET. Fans will have to pay at least $700 just to get into the stadium, according to Leyden.
Average ticket prices for tonight’s matchup and other games set to take place in Los Angeles are around $1,700, according to SeatGeek. Ticket prices for games held in New York are slightly higher at around $2,300 each on average, partly because Yankee Stadium accommodates fewer fans than Dodger Stadium does.
“You can definitely get tickets for less, and certainly for more,” Leyden added. “Tickets are really hot in both markets.”
How hot are they? Leyden noted that average ticket prices for the 2024 World Series are comparable to those for Taylor Swift’s Eras Tour concerts in the U.S.
When is the best time to buy tickets?
Leyden said he’s seen demand both increase and decrease for sports championships, with prices dipping for tonight’s game over the course of the day — given that the first pitch will be thrown out in just a few hours. But it can be hard to predict the direction in which ticket prices move.
“Sometimes prices come down for championship events, sometimes they go up,” he said.
On resale sites like SeatGeek, the market determines the price. Sellers who list tickets for too much money won’t have any buyers. Folks who don’t set prices high enough will see their tickets sell quickly, but leave money on the table.
StubHub spokesperson Adam Budelli said 2024 World Series ticket purchases on the resale platform have already outpaced sales for last year’s MLB championship series, and that this year’s tournament will be the best-selling World Series in history.
“Get-in” prices for the cheapest available tickets to Game 2 on Saturday night are holding steady at around $950 per ticket, Budelli said.
Pricing will be more dynamic as the series progresses, based on the outcome of each game and fan speculation.
The World Series Championship is determined by the best out of seven games, meaning the first team to win four games wins the title. In the event that one team sweeps the first four games, Games 5 through 7 won’t take place.
That said, Budelli noted that it’s better for fans to purchase tickets to later games now, given that prices are holding steady and that sellers refund buyers 100% of the ticket price if a game never happens.
“Tickets to those games will only go up in price from here,” he said.
Budelli offered another insight for buying tickets: Typically, the best time to buy seats is 24-48 hours before the game, after the market has settled. This is to avoid peak-demand windows when prices spike, he said.
“We sometimes see ticket prices go up closer to the games, because of the amount of people shopping who have been waiting,” he said.
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