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

Reblogger Barbara Todaro
Services for Real Estate Pros with RE/MAX Executive Realty 104763

Another great post here from Gene... people DO have options NOW....



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

















 Twitter Account of Gene Mundt, Mortgage Lender   LinkedIn Account of Gene Mundt, Mortgage Lender   Facebook Acct. of Gene Mundt, Mortgage Lender   Pinterest Acct. of Gene Mundt, Mortgage Lender   

   Gene's Chicagoland Blog/Gene Mundt, Mortgage Lender  



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


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Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Barbara. Gene is terrific and this post is really clear and specific.

May 08, 2019 03:46 AM #1
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good morning Barabara - a really important blog by Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi .  One decade has made a big difference.

May 08, 2019 03:51 AM #2
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thank you very much, Barbara, for sharing this excellent reblog selection.

May 08, 2019 06:31 AM #3
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
Marketing Agent for The Todaro Team

thanks, everyone, for your nice comments.... I'm sure Gene appreciates hearing from all of you.... please remember to leave a comment on the original post....

May 08, 2019 06:44 AM #4
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

This is another great blog you have shared with us Barbara Todaro - Have a great day. 

May 08, 2019 08:02 AM #5
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy


So happy you re-blogged this post by Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi .  I am always impressed by his expertise and his communication.  A

May 08, 2019 08:14 AM #6
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Barbara,  Great reblog by Gene one again by him.  Always great to see what Gene has to write about.


May 08, 2019 09:08 AM #7
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Barbara Todaro

Marketing Agent for The Todaro Team
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