Home Equity Lines of Credit Are in Style - Other News


Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Home Equity Lines of Credit Are in Style

Home Equity Lines of Credit Are in Style

Home Equity Lines of Credit Are in Style

Winter is a time for skiing, snowboarding and ice skating, but for some it is also a time for home improvement. According to a new study by TD Bank, people will be doing just that this season and they will be using a home equity line of credit (HELOC) to finance it.

The TD Bank HELOC study found that 80% of people with existing loans under their belt are planning on doing some work on their homes, and are thinking about using their home equity line to pay for it.

With the average amount of HELOCs set at $84,000 a little more than half (51%) said they will be using at least $50,000 to get their renovations finished. “Immediate access to low-interest funds through a HELOC gives homeowners peace of mind to adequately prepare for any season, whether they need a new roof or updated insulation,” said Mike Kinane, Head of Consumer Lending for TD Bank.

“Using a HELOC to make renovations during the winter is a smart, cost-effective option for homeowners because they can take advantage of reduced prices on materials during annual holiday sales, and access a larger pool of contractors who may now be working on more flexible off-season schedules,” he said.

Getting a HELOC

Nearly a third (32%) of people said that they will be using their HELOCs to get home renovations done, while others had different things in mind for their home equity line, including building their emergency funds (14%) and covering education expenses (12%).

People who had not used their HELOC during the past year said they let it sit because they didn’t need it for a specific item or event. While some were keeping it open in case there was an emergency of some sort they needed the funds to deal with.

HELOC’s reloaded

During the study, they also asked about 200 other homeowners who had been part of their HELOC Reset Measure last year, what they did when their draw period came due over the last 12 months. They found that two times the number of people taking part in their 2016 survey said that they would be refinancing their HELCO this year, and 28% already had.

They also found that 68% of Individuals whose reset period was approaching and had already decided to refinance kept their HELCO at what it was or decided to go for a bigger amount.

Will these folks be selling their homes anytime soon? The answer was no for 52% who said they would be staying put for at least 10 years so that the equity in their home would increase. They would then be able to leverage the home equity line they already have or get a new one.

The HELOC study was conducted between October 18 and 25 with 1,010 American homeowners.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

A Healthy Consumer Credit Market
A Healthy Consumer Credit Market

Posted: March 02, 2018

The consumer credit market ended strong in 2017, according to the TransUnion Industry Insights Report for last year, finding that the markets strength was most likely due to a variety of factors, including low unemployment, and increased... Continue reading
Personal Loans Lend a Helpful Hand
Personal Loans Lend a Helpful Hand

Posted: October 17, 2017

People take out personal loans for many reasons, and according to a new study by Discover, 68% said that taking out a loan made it possible for them to achieve their goals, whether they wanted to pay down debt, deal with medical bills or... Continue reading
Earn $50 or 5,000 Points at Saks with Amex Offers
Earn $50 or 5,000 Points at Saks with Amex Offers

Posted: March 23, 2018

Do you need an excuse to shop at Saks Fifth Avenue? If so, then we have one for you—a $250 spend gets you either a $50 bonus or an extra 5,000 Membership Rewards points. This Amex offer is good until April 30, 2018. For some, the cash... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!