More and more homeowners are sitting pretty – and in the money, according to Black Knight Data & Analytics which studies the mortgage industry.

Homeowners reached an all-time high of equity at their disposal in the third quarter of last year with 42 million mortgage-holding homeowners having a collective $5.5 trillion in ‘tappable’ equity – or the amount available for homeowners to borrow before reaching 80 percent of debt-to-value against their home – according to the research firm.

For context, that is $3 trillion more than what was available when the housing market bottomed out in 2012 after the financial crisis.

Following the housing crash, millions of borrowers defaulted on their upside-down mortgages, discovering that they owed far more than their homes were worth. Thankfully, the rising home prices of the last two years have returned borrowers right-side up – and well beyond.

Approximately 90 percent of Tampa homeowners now have equity they can use, which, in turn, could further fuel the economy.

Generally speaking, there are two ways to cash in on an equity-rich home.

Refinance: Homeowners can refinance the original mortgage to a larger loan which could possibly change the interest rate on the loan.

Second Loans: Homeowners can take out a second loan, either in the form of a home equity mortgage which is a lump sum, or a home equity line of credit (HELOC) which acts like a checking account on your home.

HELOCs are exceptionally popular – but they recently lost a major benefit under the new Republican tax law. While borrowers once used to be able to deduct interest paid on up to $100,000 in home equity loan debt, the new tax bill states that interest paid on these loans is no longer tax-deductible.

So all these changes beg the question: Is it better just to do a cash-out refinance or a HELOC?

Short answer? It all depends.

Homeowners who will still itemize under the new tax plan will likely determine that the lack of deductibility for HELOC interest isn’t as appealing as a cash-out refinance as a means to access their equity.

All the recent changes affecting real estate and taxes have left a considerable gray area of unknowns as homeowners, lenders and tax accountants scramble to recalibrate financially in order to adapt.

If you’re ready to talk about your next move, give one of the experienced professionals at DeLeon Sheffield Company a call today. We’re ready to partner with you, every step of the way, to find you the next house to call home.

Because at DeLeon Sheffield Company, ‘We’re More Than Realty; We’re Family.’