Tag: releasing equity from us real estate

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)

Top 5 Large Metro Areas by Equity Rich Share (Q1 2026)

National Equity Rich Trend

Source: ATTOM, Q1 2026 U.S. Home Equity & Underwater Report

Why Home Equity Is Important

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.

Contact our team to schedule a call, or reach out directly at [email protected] today.

Frequently Asked Questions