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Could Your Home Equity Be the Best Gift Ever?


Giving gifts is one of the joys of the holidays. There’s nothing like that feeling you get when you share a present with a loved one and see their face light up with excitement and gratitude. And let’s face it, we all love to be on the receiving end of a gift, too. As a homeowner, the perfect gift may already be right under your nose … or, more accurately, right under your roof.


It Came Without Ribbons, It Came Without Tags


If you’ve owned your home for the past few years, you’ve likely benefited from significant home-price appreciation. Home prices have risen continuously since 2012, providing homeowners with large amounts of home equity. When the pandemic began, equity growth skyrocketed, as the below chart illustrates.


While the rate of appreciation varies by local market and your specific property, the national averages could give you an idea of how much your equity has grown.


In the second quarter of 2022, average home equity grew 27.8% from the previous year, with the typical homeowner seeing a $60,200 annual gain. In coastal markets like California and Florida, average equity grew by $117,000 and $100,000, respectively. Although home price appreciation has moderated in some markets throughout 2022, the amount of tappable equity available to homeowners remains historically high.


Silver and Gold … Or Just Cold, Hard Cash


Do you already have visions of sugarplums (or dollar signs) dancing in your head? If you have home equity available to tap into, it could be a great way to achieve your financial goals. The best part is, you can use it however you like.


Perhaps a kitchen or bathroom remodel has been on your holiday wish list for far too long. Or maybe you’re looking for a way to pay off high-interest debt, cover college tuition, or have an emergency fund to pull from in case of the unexpected. Your home equity could make it happen.


Never before in history have home values risen so high and so quickly. Today’s homeowners can use this to their advantage by unlocking their equity and putting it to work. Why not give yourself that gift this year?


How Much Home Equity Do You Have?


To calculate your home equity, subtract your outstanding mortgage debt from your home’s market value. Suppose your home is worth $300,000 and you owe $175,000 on your mortgage. That would equal $125,00 in home equity.


If you need help figuring out how much equity you have, we can help you run the numbers.



*This is not a commitment to lend. Certain restrictions apply. Not all borrowers will qualify.
Source: CoreLogic, a data and analytics company, Homeowner Equity Report, Q2 2022.