A Decade of Housing Healing: Has it Created Opportunity for You?

Mortgage and Lending with NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 IL Lic 031.0006220/WI



A Decade of Housing Healing:

Has it Created Opportunity for You?



It's now been around a decade since the big housing market crash ... 


While many housing markets have cooled a bit, as of late ... the Home Equity Report for the last quarter of 2018 (and a quarterly overview of the distribution of equity across all U.S. single-family residential properties with a mortgageby CoreLogic clearly shows that some healing has taken place ...  


"U.S. homeowners with mortgages (which account for roughly 63 percent of all properties) have seen their equity increase by 8.1 percent year over year, representing a gain of nearly $678.4 billion since the fourth quarter of 2017." 


That news  ... paired with current stable interest rates and increased housing prices ... has many homeowners wondering ...

"Has the healing that has taken place affected me?  Am I sitting on untapped home equity?


The number of inquiries I'm receiving regarding this issue is definitely on the rise.  Those inquiries typically revolve around these issues:


  • Debt Consolidation:  Existing debt is paid off via a new loan, creating one loan with one singular large debt versus multiple loans with small balances.  Typically the new loan's terms are more favorable and include a lower interest rate.
  • Student Loan/Credit Card Payoffs:  Borrowers hope to pay off or reduce balances on credit cards with double-digit interest rates or on high balance Student Loans that seemingly last forever. 
  • HELOCS:   A borrower's HELOC (Home Equity Line of Credit) is coming due or soon to be coming due.  Instead of renewing the HELOC, they wish to convert the HELOC into a Fixed-Rate Loan.  
  • Reducing Mortgage Term:  Borrowers wish to reduce their terms from their current mortgage, going from 30-year Fixed to 15 or 20-year loan terms.  The debt is paid down faster and many times positions borrowers more advantageously later in life.


As shown above, many housing markets across the U.S. have experienced market appreciation.  But are rising housing prices alone enough to allow U.S. homeowners to borrow on their property again?  


Are borrowers finding that they can erase their debt that carries higher rates of interest?  Can they ease the financial pressures that drain their monthly cash flow or eliminate that debt that has proven hard or impossible to pay off or pay down?   


The answer is Yes ... No ... and Maybe ...  


For homeowners that bought or refinanced their homes within the last 10 years and find themselves carrying an interest rate below 5%, there may be financing options to consider.  Those options might include:


  • A Second Mortgage:  A Second Mortgage uses any equity available in your home as security against the first mortgage.  A lien is placed on your property which is subordinate to the first mortgage.  Second Mortgages typically have higher interest rates than first mortgages. 
  • A Home Equity Line of Credit (HELOC):  Keeping your current low-interest rate mortgage and not pursuing a Refinance may be the better option for you to take. 

    (And yes, this is the very same type of loan mentioned above as something some borrowers may wish to eliminate.  But just as the HELOC made sense for them at the time they initiated it, a HELOC may make sense for some borrowers now.)

  • Cash-Out Refinance Loan:  This is a loan where you finance a new mortgage for more than your existing mortgage balance and then pay off the existing mortgage.   You get a check for the difference, or that same excess money is directed from the closing to pay off Creditors and balances owed to them. 

     For many reasons, a Cash-Out Refinance may be the perfect financing solution you seek.   In cases where a Cash-Out Refinance is sought, an Appraisal will be performed.  The Appraiser will determine the Current Value of your property. 

     Typically, 80% of that property value is available to be borrowed, whether it be ONE loan or a combination of First Mortgage - Second Mortgage - HELOC.  Jointly they must not equal more than 80%* of the Appraised Value.  (* FHA and VA cash out Refinances allow higher Loan To Value Ratios, where qualified.)


Ultimately, the answer and solution you seek are a very personal one ... one that should be based and made solely on YOUR personal finances and goals, no one else's.  There simply is no broad "one-size-fits-all" answer.  


So ... how do you discover if equity exists in your home?  HOW do you go about reaching that financially sound conclusion?  How do you proceed?



In order to find an answer and the financing option that serves your personal needs best, you need to reach out to an experienced Loan Officer


Only through a complete and thorough review of your credit and finances can you discover if any advantageous financial solutions exist. 


With the help and guidance of your Loan Officer, comparisons between the options revealed through this process will be weighed ... and the pros and cons of each deliberated. 


Then and only then can you make an intelligent informed decision. 


Now I know conducting a financial review sounds boring ... and I also understand it demands some effort on borrowers' part.  But the effort is needed in order to find the answer you're searching for ... and well worth it.   




Peace of Mind.  Because, should you decide to move forward with new financing, you then do so knowing that you have considered all the avenues open to you.  You have chosen the form of financing that will fulfill both your short-term needs and long-term goals.  


Monetary stress relief.  Funds to tackle needed and desired household repairs and improvements.  Peace of mind.  No matter your end goal, your equity and money will be working hard on your behalf.


In the Chicagoland area - Illinois - Wisconsin, reach out to me with your questions.  I'll be happy to hear from you and assist you in reaching your goals.


* When in need of Mortgage info, guidance, or service when buying, refinancing, or investing in a home in New Lenox - or elsewhere in Chicagoland - IL & WI, contact me

I'll be happy to put my 40+ years of mortgage experience and expertise hard to work on your behalf.
I'm easily found at:

Gene Mundt
Mortgage Originator - NMLS #216987 - IL Lic. #031.0006220 - WI Licensed
American Portfolio Mortgage Corp.
NMLS #175656
Direct: 815.524.2280
Cell/Text: 708.921.6331
eFax: 815.524.2281
















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Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                 IL Lic. #031.0006220  -  WI License #216987                                                                                                    

NMLS #175656


Gene Mundt, Mortgage Originator,  40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking:  #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including:  The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 


Your Referrals & Testimonials are Always Greatly Appreciated! 


Email Me .. to be added to my Mortgage & Real Estate Newsletter


Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Barbara Todaro 05/08/2019 03:31 AM
Lending / Financial
Illinois Will County New Lenox
Home & Credit Savvy
Consumer Mortgage Tips
home equity
housing markets
cashout refi
mortgage and credit analysis
financial review

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Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Hi Gene... what a great and informative post for anyone who's thinking about "cashing in" on their equity to pay off other debts. And as you said, it's a very personal decison based on very specific needs and criteria of each household.

May 07, 2019 01:05 PM #1
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Gene great post and in my market the healing took place about six years ago and since then it has surpassed the high point prior to the crash about three or four years ago....Endre

May 07, 2019 11:45 PM #2
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

Good morning, Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi knowing there is equity there is a great stress relief and second chance for many....most can sleep at night now.... great post....as usual....

May 08, 2019 03:30 AM #3
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Gene. Your upbeat style coupled with real information and specifics make this a terrific post.

May 08, 2019 03:49 AM #4
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi - this blog is really something to think about.  What a difference a decade has made too.

May 08, 2019 03:52 AM #5
Corinne Guest
Corinne Guest, Realtor | Barrington Realty Company - Barrington, IL
Barrington Lifestyles

Great thoughts here and we certainly took advantage of a 15 year mortgage and are watching that balance drop very fast.

May 08, 2019 04:35 AM #6
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

Excellent post Gene. I have seen customers purchase again after losing their home in the crash. Things are improving.

May 08, 2019 07:35 AM #7
Patricia Feager, MBA, CRS, GRI,MRP
Selling Homes Changing Lives

Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi - Congratulations on a well-deserved FEATURE! It's really an eye-opener! You give me lots to think about. ActiveRain is lucky to have you as a member who provides excellent information on the truth about lending and the mortgage industry. 

May 08, 2019 08:13 AM #8
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy


Thanks to Barbara Todaro  I am here to thank you for this informative post.  For some reason, I keep missing them as you post them (even though I follow you).  Wishing you a great rest of the week.  A

May 08, 2019 08:16 AM #9
Andrea.B Ferreira 954-303-8289 CRS
Keyes Co. - Davie, FL
Miami Dade, Broward and Palm Beach County in FL

great post, you just reminded me to call my past customer with 10 years or more anniversary to check on them. Thank you.

May 08, 2019 08:52 AM #10
Anna Banana Kruchten CRB, CRS 602-380-4886
Phoenix Property Shoppe - Phoenix, AZ
Arizona's Top Banana!

Gene this is a really good post! Looking back 10 years, actually more like 12 for us here in Phoenix the landscape is so differnt now (thankfully). Many people have been able to re-purchase a home after losing it to foreclosure, short sale or BK.  Some have refinanced but most are very leery to do so....and frankly I agree with that. I don't want to see people get into the mess like they did before.

May 08, 2019 02:00 PM #11
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Gene- another excellent post and I'm so glad that it was featured. This is something that everyone should read and encourage homeowners who have further questions to contact you!!!

May 08, 2019 07:47 PM #12
Dale Taylor
Re/Max 10 New Lenox Illinois - Frankfort, IL
Realtor = Chicago Illinois Homes Townhomes Condos

Because the Chicago Southland is the most affordable, the most fragile to any economic downturn, I am constantly reminding my community of homeowners not to give themselves any excuse to touch their home equity, with the exception you presented of lowering their interest rate or shortening their mortgage duration. In my marketplace I still encounter homes with mortgages higher than their potential market value. It breaks my heart every time I have to inform potential sellers they must put their relocation goal on hold.

May 08, 2019 09:25 PM #13
Debra Leisek
Bay Realty,Inc Homer Alaska - Homer, AK

As always another fine post.  I would love to be able to work with you! It would be a real pleasure....even on a difficult loan!  Our market never suffered as much as some but the values did drop. They are up and going strong now and equity is a positive factor.  Thank you!

May 09, 2019 12:02 AM #14
Andrew Mooers | 207.532.6573
Northern Maine Real Estate-Aroostook County Broker

Your years of experience help the house buyer find the best mortgage underwriting fit Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi ! Keep up the detailed helpful financing blog posts here on ActiveRain Real Estate Network !

May 09, 2019 02:15 AM #15
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

It mortgages were lions Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi would be the lion-tamer......

May 09, 2019 07:48 AM #16
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

I worry when people misuse home equity loans. But the examples you cite, are valid reasons some may want to consider tapping into their equity. We own our home - no mortgage, and it does give us peace of mind that if we ever needed to access funds, we could. Thanks for another valuable and informative post, Gene. It's obvious you know your stuff. D 

May 11, 2019 06:56 AM #18
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

I am a saver but, you know, during the recession, I was terribly worried that we were going to have to utilize our home equity. Thankfully, we never had to touch it but, for us, it would have been a last-option - THE very last option!

Another wonderful post and a great reminder that we've been on a decade-long healing mission in housing!

Happy Saturday, Brotha Gene!

May 11, 2019 08:41 AM #19
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Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

708.921.6331 - 40+ yrs experience
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