Skip to main content

Home Equity Seen as Go-To Source to Cover Household Bills

Phil Hall
Sep 19, 2018
When it comes to paying for renovations on a house, one in three homeowners pull out their credit cards to finance their upgrades

Tapping into home equity to keep pace with regular household expenses is being viewed as an acceptable strategy by a growing number of homeowners, according to a new study from Bankrate.com.
 
Seventy-four percent of homeowners polled for the survey stated there was no problem in borrowing from home equity to finance residential improvements and repairs, while 57 percent believed this was the best reason to use that money. Thirty-one percent of homeowners who earn less than $30,000 per year told Bankrate.com that they felt there was no problem in using home equity to cover ordinary bills, more than triple those who make $75,000 or more. Twenty-two percent of Millennials believed borrowing from home equity to cover household bills is viable, compared to 12 percent of those who are older. Other reasons cited for tapping home equity were debt consolidation (19 percent of respondents) and education expenses (9 percent), with education expenses favored by Millennials.
 
“The idea that nearly one in six American homeowners views ‘keeping up with regular household bills’ as an appropriate reason to borrow from home equity speaks to how far some households are stretched on a monthly basis,” said Bankrate.com Chief Financial Analyst Greg McBride, CFA. “This further exemplifies the importance of having an emergency fund, so when the unexpected happens—and it will happen—there is a savings cushion to fall back on.”

 
Published
Sep 19, 2018
FormFree Enters Deal To Offer Products to Lenders One Members

Mortgage Cooperative Hopes Automated Borrower Verification Tools Will Enhance Customer Experience

Industry News
Aug 03, 2021
AHP Servicing Names Charles Halko Jr. CFO

Brings 30-Years Of Experience to Chicago-Based Servicer

Industry News
Aug 03, 2021
Ready Capital Announces Deal To Acquire Red Stone

Real Estate Finance Company Expands In Multi-Family Affordable Housing Sector

Industry News
Aug 03, 2021
Anchor Loans Hires Andrew Jewett As SVP, Enterprise Sales

Formerly lead lending at Sundae Inc.

Industry News
Aug 02, 2021
Pretium Adds 3 Execs With Residential Credit Expertise

New Hires Will Serve As Managing Directors

Industry News
Aug 02, 2021
loanDepot And mellohome Introduce Home Services Bundle

loanDepot, Inc. and its sister company mellohome are launching a proprietary bundle of home buying and selling services.

Industry News
Jul 30, 2021