The amount of available home equity today is more than $13 trillion, up from $6.7 trillion in 2011. However, since the housing crash, homeowners have been hesitant to take out equity.
A new report from Transunion anticipates roughly 10 million homeowners will take out home equity lines of credit in the next four years, double the amount of originations between 2012 and 2016, per CNBC.
HELOCs, which are often loans after the primary mortgage, usually rise and fall along with home equity, but that didn't happen following the recession. There was a significant pullback in lending, as banks considered the loans too risky and too difficult to originate, given the stricter underwriting guidelines that were implemented.
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