Equity is the difference between what your home is worth and what you owe on your mortgage. And these days, homeowners have a lot of it. In fact, according to ATTOM Data Solutions' most recent U.S. Home Equity & Underwater Report, nearly 50 percent of mortgaged properties were considered equity rich at the end of last year.
That means the combined amount of loan balances secured by those properties was no more than 50 percent of their value – which is another way of saying the property is worth a lot more than what its owner owes on it. That's a good situation to be in and, these days, most homeowners are doing pretty well. According to the report, a full 94 percent of homeowners have, at least, some equity in their home.
Bob Barber, ATTOM's CEO, says, the past few years have been good for building equity but the gains are likely to slow. “[It] depends on a lot of factors, including where interest rates go,” Barber said. “But, for now, it looks like the run up in wealth flowing from owning homes has stalled along with the market.”
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