After two years of meteoric price appreciation, U.S. home prices seem to have hit their peak. U.S. mortgage rates have more than doubled since the beginning of 2022, and according to CNN, the average interest mortgage payment on a median-priced home is up 73% from one year ago.
Recently the FED approved a 0.75-point interest rate hike, taking rates to their highest since 2008. These high-interest rates, combined with quantitative tightening, are pushing home prices down, a trend that Economists at Goldman Sachs and Wells Fargo expect to continue into 2023.
Many non-residents who own a U.S. property are hesitant about financing their U.S. real estate when mortgage interest rates are so high. However, there is more to the picture than meets the eye. With housing prices expected to continue dropping, many savvy investors are taking advantage of cash-out refinance mortgages.
The truth is, cash-out refinancing can be a good way to improve your financial situation – we think of it as an affordable way to borrow money if you own substantial equity in your home. The money from a cash-out refinancing can even be used to rebuild equity that you’re taking out if you decide to use it on value-adding home renovations.
With the money you take out of your property when you refinance, you can do whatever you want with it. You can stay on top of an unexpected medical or vehicle bill, finish paying back your college loans, or make home repairs.
While prices have dropped by 2.6% since the end of June, according to a CNBC article, they are still 10.7% higher than in September 2021. This is the canary in the coal mine, and foreign investors would be wise to take advantage of their equity while it’s still high.
Let’s flesh this out with an example. Imagine you purchased a home in Dallas, Texas, in 2016 for $230,000. As of November 2022, that home is valued at $460,000.
You can take advantage of that massive increase in value before it trends down by leveraging the property and extracting a substantial amount of your equity investment. The best part? You keep your U.S. property investment and its cash flow and use the extracted funds toward a new investment.
FED Chair Jerome Powell signalled that interest rates would likely reach even higher than initial targets set in September. As the value of your investment property continues to decrease, so will the potential equity you can leverage. Consider striking while the iron is hot and lock down your property value.
Don’t miss the opportunity to utilise your equity while it remains high. Let your money make you money with America Mortgages cash-out refinancing. America Mortgages has a 97% approval rate for both U.S. Citizens & Foreign Nationals. That is our sole focus and our expertise. Contact us today to speak to one of our loan officers at [email protected].
U.S. homeowners are sitting on a historic amount of untapped wealth. As of Q1 2026, homeowners collectively hold approximately $11 trillion in tappable home equity, according to ICE Mortgage Monitor, and 43.3% of all mortgaged homes in the U.S. are considered equity rich, according to ATTOM’s Q1 2026 U.S. Home Equity & Underwater Report. This equity has provided many homeowners with the opportunity to cash in through home equity loans, cash-out refinancing, or a home equity line of credit (HELOC).
While that equity-rich share has eased slightly from a recent peak of 49.2%, it remains historically high, and most of that wealth continues to go untapped. According to the Federal Reserve Bank of New York’s Q1 2026 Household Debt Report, total outstanding HELOC balances reached $446 billion, the 16th consecutive quarterly increase, yet the vast majority of available equity nationwide still sits unused.
What Does It Mean to Be Equity Rich?
Equity is the market value of your home minus your mortgage balance. Homeowners are considered equity rich when they have a minimum of 50% equity in their homes, meaning their outstanding loan balance is no more than half of the property’s estimated market value.
The number of equity-rich homeowners typically rises as property values increase, since a home’s market value climbs while the amount owed on it stays the same or shrinks. This dynamic played out dramatically during the pandemic-era housing boom, and while the equity-rich share has moderated somewhat as mortgage rates have risen and price growth has cooled, overall homeowner equity across the U.S. remains historically strong.
Equity-rich concentrations vary significantly by location. According to ATTOM’s Q1 2026 data, states like Vermont, New Hampshire, Montana, Rhode Island, and Hawaii have the highest shares of equity-rich homeowners, while among large metro areas, San Jose, Los Angeles, and San Diego lead the way. If you’re a foreign national or U.S. citizen living overseas who owns U.S. property in one of these markets, you may be sitting on more accessible equity than you realize.
Where Equity Rich Homeowners Are Concentrated in 2026
Top 5 States by Equity Rich Share (Q1 2026)
State
Share of Equity Rich Homes
Vermont
85.7%
New Hampshire
58.1%
Montana
57.7%
Rhode Island
57.2%
Hawaii
55.8%
Top 5 Large Metro Areas by Equity Rich Share (Q1 2026)
Home equity is an excellent long-term wealth-building strategy. To demonstrate just how true this is, let’s compare an auto loan to a mortgage. When you take out an auto loan, you’re paying interest on an asset that depreciates in value as soon as you drive it off the lot. That means that by the time you’ve paid off the loan, the car will most likely be worth less than your purchase price, and you’ll have paid interest on top of that.
In contrast, mortgage payments reduce your debt while your home increases in value. Of course, property values could drop, but that’s unlikely to happen over the long term. One financially powerful aspect of home equity is that you don’t need to sell your home to profit from it, being equity rich means you already have access to real, usable wealth.
How to Access Your Home Equity
There are three primary ways equity-rich homeowners typically access their equity, each suited to different financial goals.
1. Home Equity Loan
Think of this as taking out a second mortgage at a fixed rate that must be repaid within a set period. Home equity loans often carry slightly higher interest rates than primary mortgages, because if a home is foreclosed, the primary lender must be repaid first.
2. HELOC (Home Equity Line of Credit)
Like a home equity loan, a HELOC acts as a second mortgage, but it offers more flexibility for the borrower. That’s because a HELOC has a revolving balance similar to a credit card: you can borrow what you need, repay it, and borrow again. There are usually no closing costs, and HELOCs typically carry adjustable rates that move with the prime rate. To learn more explore our comparison guide on HELOC vs Home equity loans.
3. Cash-Out Refinance
This option leaves homeowners with less equity in their home, since you’re refinancing for a larger amount than you currently owe and taking the difference in cash. Lenders typically view this as riskier, which can mean higher closing costs.
The best option for accessing your equity depends on your goals. A home equity loan is well suited to medical expenses, education costs, or debt consolidation, since you get immediate access to a fixed lump sum. A homeowner who needs funds periodically, for ongoing home improvements or a business, might prefer a HELOC’s flexibility. A cash-out refinance is typically best for those who need a larger amount of cash immediately and are comfortable restructuring their existing mortgage.
Should Equity Rich Homeowners Buy, Sell, or Stay?
Buying, selling, or staying in a home with untapped equity can all be financially sound, depending on your circumstances.
Homeowners who want to sell can purchase another property and use a HELOC to fund renovations on their first home while living in the second. They could also use a home equity line of credit to help fund a down payment on the new home.
Staying in an equity-rich home can also be a wise financial decision. You can still access your equity, through a HELOC, home equity loan, or cash-out refinance, while continuing to benefit from the property’s ongoing appreciation. Keep in mind that if you sell in an up market, you’ll typically be buying your next home in that same up market, so timing your move around equity alone isn’t always the full picture.
Ready to Access Your Home Equity?
If you’re an equity-rich homeowner exploring your options, America Mortgages has a 97% approval rate for both U.S. citizens and foreign nationals. Our sole focus is providing market-rate U.S. mortgage financing for foreign nationals and U.S. expats, no one does it better. If you’d like a broader look at how global homeowners are unlocking U.S. equity from abroad, see our guide on turning your home equity into cash globally.
Being equity rich means you owe no more than 50% of your home’s estimated market value on your mortgage. As of Q1 2026, 43.3% of mortgaged U.S. homes qualify as equity rich, according to ATTOM’s Home Equity & Underwater Report.
Q2. How much equity do equity rich homeowners typically have access to?
Equity rich homeowners have at least 50% equity in their homes, though many have significantly more. Nationwide, homeowners collectively hold approximately $11 trillion in tappable home equity as of Q1 2026, according to ICE Mortgage Monitor.
Q3. What’s the best way for equity rich homeowners to access their equity?
The right option depends on your goals. Equity rich homeowners often choose a home equity loan for a fixed lump sum, a HELOC for flexible, revolving access, or a cash-out refinance when they need a larger amount of cash immediately.
Q4. Can foreign nationals and U.S. expats who own equity rich U.S. property access financing?
Yes. Foreign nationals and U.S. expats who are equity rich in a U.S. property can access financing through lenders like America Mortgages, which specializes in market-rate U.S. mortgage solutions for international borrowers without requiring U.S. residency.
Q5. Which U.S. states and cities have the most equity rich homeowners?
According to ATTOM’s Q1 2026 data, Vermont, New Hampshire, Montana, Rhode Island, and Hawaii have the highest shares of equity rich homeowners statewide, while San Jose, Los Angeles, and San Diego lead among large metro areas.
Q6. Should equity rich homeowners sell their home or stay and tap their equity?
Both can be smart moves. Equity rich homeowners who want to sell can use a HELOC or equity line of credit to fund a down payment on a new property, while those who stay can still access their equity through a home equity loan, HELOC, or cash-out refinance while benefiting from continued appreciation.
America Mortgages Inc. is a direct lender and leading mortgage broker specializing in financing solutions for U.S. Expats and Foreign Nationals living overseas. We provide access to over 150 U.S. bank and lender programs, delivering tailored mortgage options directly to our international clients. America Mortgages is wholly owned by Global Mortgage Group Pte. Ltd., an international mortgage specialist based in Singapore.
