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Banks ramp up push for home-equity lines

NEW YORK – April 6, 2016 – As the broader mortgage market remains in the doldrums, lenders are again touting cash-out refinances and home-equity lines of credit that allow homeowners to tap into their home equity when they need extra cash.
TD Bank, for example, has been trying in recent weeks to persuade shoppers at hardware stores along the U.S. East Coast to start taking cash out of their homes again. The TD Bank tour bus is equipped with a galley kitchen and iPads for homeowners to use to begin the application process.
Banks are trying to offset faltering mortgage originations and a refinancing wave that is fizzling out, betting that home-equity line of credit offers will resonate with borrowers whose homes are worth more than they were a few years ago, but who need cash for renovations or other expenses because they held onto the home longer than expected.
Lenders extended just over $156 billion in home-equity lines of credit last year, the largest dollar amount since 2007, according to new figures from mortgage-data firm CoreLogic Inc. – a 24 percent increase from 2014 and a 138 percent spike from 2010 when new approvals hit a low point.
Source: Wall Street Journal (03/28/16) Andriotis, AnnaMaria
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Source: Florida Realtors Feed

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