Home Owners Putting HELOCs to Better Use

Wednesday, December 3, 2014   /   by Jason Schaefer

Home Owners Putting HELOCs to Better Use

Very popular 8-10 years ago, Home Equity Lines of Credit are again making a come back. However, this time around, home owners appear to be using them in a much more responsible manner.

HELOCs were once thought of an easy way to attain cash. Home owners surveyed indicated they are using the HELOCs for projects such as kitchen updates, bathroom additions, new roofs, and other remodeling projects. Another 29% of home owners said they are using the money to take advantage of interest rates on financial products, consolidate debts, or pay off credit card balances. The survey indicated other major uses of a HELOC: buying new cars (27%), paying medical bills (18%), kids' and adults' education costs (15%), travel (15%), and small investments (13%).

Home Equity Lines of Credit are considered a much safer financial product in 2014 compared to years past. Most banks limit the combined loan-to-value ratio. In addition, lenders are more thoroughly reviewing documented income, employment, credit, and property values.

Source: Realtor Mag
 

The Schaefer Team - Windermere Real Estate
Jason And Alana Schaefer
2800 South Reserve
Missoula, MT 59801
Jason - (406) 493-4262
Alana - (406) 493-0066

© 2018 Montana Regional MLS. Information is provided exclusively for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Information is deemed reliable but not guaranteed and should be independently verified. Data updated 8/20/2019 1:26 AM CST.