With rising mortgage rates, homeowners in need of cash for remodeling, debt consolidation, or just a rainy-day fund, have increasingly turned to a home equity loan. And, thanks to rising home values over the last decade, homeowners are sitting on more equity than ever.
Many homeowners are opting to remodel or add on rather than move, but don’t want to touch their low-interest first mortgage when tapping into their home equity. A home equity loan is now one of the most viable options to convert equity into cash. Home equity loans are a great option to consolidate debt or used as a cushion to weather the challenging economy.
With this surge in home equity demand, lenders need to re-focus on this market and establish a way to differentiate themselves from the competition.