Homeowners held record levels of equity last year. According to CoreLogic, the average borrower had $280,000 in home equity in early 2022 — a gain of $64,000 over the previous year and a whopping $125,000 over five years. Not much has changed. "While equity gains contracted in late 2022 due to home price declines in some regions, U.S. homeowners on average still have about $270,000 in equity, nearly $90,000 more than they had at the onset of the pandemic," says Selma Hepp, chief economist for CoreLogic.
With house prices still high and near-record equity levels, now may be an excellent time to convert your equity into cash via a home equity loan or HELOC. Here's how.