Consumers are continuing to tap into home equity to help them create a personal fund that is tailored to their needs. The number of folks tapping into home equity is rising and shows signs of growth for years to come.
"Consumers still need funds to do things like renovate or repair their homes as well as for purposes like financing a child's college education 'and home equity is typically one of the best options for consumers to do that,'" said Mike Kinane, the senior vice president of consumer lending at TD Bank, according to National Mortgage News.
"Because it is secured by property, taking out a home equity loan or line of credit is cheaper than using a credit card or other unsecured forms of borrowing."
Experts believe that taking a home equity loan is better when it comes to long-term financial planning. The report also states that home equity borrowers today have higher credit scores.
Kinane's overall assessment of home equity loans is a smarter option. There is special care taken with home equity loans and Kinane specifically cited the underwriting process as being particularly careful.
To learn more about the influx of consumers turning to home equity loans, click on the image above.