Homeowners tend to believe that while borrowing against their home equity is a valuable option, it should be used as an emergency action, a survey reported by Origination News finds.
The article, “Home Equity Loans: For Emergencies Only?” reports on a study conducted by Ipsos Marketing on behalf of the Consumer Bankers Association, which surveyed 1,000 homeowners and found that nearly two-thirds of respondents who have a home equity loan consider borrowing against their home as an emergency-only situation.
People are open to the loans, but they are cautious, Kerri Ryan of Ipsos told Origination News.
A quarter of those polled say they will likely need to borrow money in the next five years, and half of those said they would consider equity-based products to cover their needed expenses, the article reports.
Additionally, the survey polled customers on where they would seek information about loan options, finding that while a majority say they would look to their primary bank, a “healthy minority” said they would contact another institution where they have an account and 16% said they’d reach out to a lender whom they have not worked with before.
View the Origination News article.
Written by Elizabeth Ecker