More Than 25% Of Homeowners Intend To Withdraw Equity

Mortgage News May 30, 2023

The survey findings from Accurate Group reveal that 26% of homeowners have intentions to utilize their home equity as collateral for borrowing within the upcoming year.

The report involved conducting interviews with one thousand homeowners in the United States during the first quarter, aiming to ascertain their plans regarding obtaining a home-equity loan, home-equity line of credit, first mortgage refinance, or reverse mortgage within the upcoming year.

The primary motivation cited by respondents for seeking to access cash was the interest rate associated with the loan. Following that, the extractable equity amount, investment performance, and job security were identified as the subsequent factors of importance.

Among those expressing an interest in obtaining cash, the survey revealed that 71% of respondents preferred a second mortgage, while 31% indicated a preference for refinancing their current first mortgage. Only 7% of participants expressed a willingness to consider a reverse mortgage as their chosen option.

Among individuals interested in acquiring a Home Equity Line of Credit (HELOC), the survey indicated that 35% intended to utilize the funds for home improvement purposes, while 15% had plans to make a significant purchase. Additionally, 13% of respondents anticipated using the funds to pay off high-interest loans.

Survey respondents who did not have a mortgage constituted 45% of the homeowners included in the study.

According to Accurate Group CEO and President Paul Doman, the current higher mortgage rates, remarkable home price appreciation, limited housing inventories, and economic inflation pose challenges for both lenders and borrowers. In a news release, Doman mentioned that the purpose of this survey was to provide lenders, loan services, and originators with an improved understanding of homeowner sentiment, assisting them in effective planning and identification of strategic opportunities for loan volume growth. This report offers valuable insights into what lenders can anticipate in the next 12 months as they navigate the dynamic real estate market.

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Need a list of loan officers in your area? Contact Jennifer Swanson at 260-223-9203 or Jennifer@SpecialtyContactDatabases.com


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