Homeowners See Home Equity Borrowing as a Valuable “Emergency” Option

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


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  • It is very odd that either a HECM or proprietary reverse mortgage are looked upon as being equity loans; they are not.  True equity loans are based on the value of the home after all debt.  Reverse mortgages are more like traditional mortgages in that the loan is never based on mere equity; it is based on the entire value of the home.

    Why is the name conversion in the name for the FHA loan?  Since borrowers can pay it off or down at any time perhaps it should be named the Home Equity Conversion and “Deconversion” Mortgage since equity is not permanently converted into anything.

    When seniors are merely using the HECM to replace another mortgage, what conversion takes place?  One mortgage for another?  Oh yeah, at the end of the day after funding, what has equity been converted into?  A mortgage. 

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