About 80 Percent of Homeowners Have 'Tappable' Equity

The amount of home equity borrowers have at their disposal reached an all-time high in the third quarter of 2017 -- 42 million homeowners with mortgages have a collective $5.5 trillion in "tappable" equity.

Black Knight Data & Analytics study defines tappable equity as the amount available for homeowners to borrow before hitting 80 percent of debt to value against their home. CNBC reports that while cash-out refinances now account for 62 percent of all refinances, there are far less than during the housing boom in 2005.

One way to take cash out is a home equity line of credit (HELOC) ... HELOCs are very popular, but they recently lost a major benefit. Under the new Republican tax law, the interest paid on these loans is no longer deductible. Borrowers used to be able to deduct interest paid on up to $100,000 in home equity loan debt.

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