New survey from loanDepot illustrates how Home Equity Lines of Credit (HELOCs) can alleviate financial pressures for American homeowners
Dec 15, 2022
Amid inflation and rising consumer debt, findings show American households would put their HELOC funds to use quickly, ranking home upgrades and renovations as the top use
IRVINE, Calif., Dec. 15, 2022 /PRNewswire/ -- A new survey from loanDepot, one of the nation's largest non-bank retail mortgage lenders, shows an opportunity for American homeowners to better utilize their home equity to manage pain points due to inflation, rising consumer debt, and other financial concerns.
The survey, which polled more than 1,000 American homeowners across the country, illustrated that Americans grappling with recent economic pressure could alleviate some of that pressure by using a Home Equity Line of Credit (HELOC) to achieve their financial goals. American homeowners are currently sitting on record levels of home equity, seeing an average 15.8% increase from 2021's already heightened numbers1.
Key findings from the survey include:
Americans are feeling the financial pinch, with inflation and consumer debt as top concerns. Most American homeowners (58%) say they are feeling financial pressures, and nearly as many (54%) are concerned about being able to pay off their credit card or other high-interest consumer debt.
Eliminating this debt ranked as the top financial goal for respondents. Despite this, a third of American homeowners (33%) are not aware that their home equity can help pay off their consumer debt, indicating a greater need for education to help homeowners understand their options and make informed financial decisions. Nearly two thirds (60%) say, if they were to tap into their home equity, they would use the extra funds quickly, within three months.
Adding to the pinch, inflationary pressures have impacted the financial choices of homeowners in the last year, causing many (58%) to "reduce daily spending habits" while others (40%) have "delayed bigger financial decisions," such as home repairs and remodels.
"American households are struggling with today's economic pressures and increased cost of living, which is having an impact on their immediate and long-term financial decisions," said loanDepot, Inc. Digital Products and Services President Zeenat Sidi. "This new data shows how and why a HELOC can be a smart financial tool for homeowners, many of whom are sitting on record levels of equity."
Homeowners are most likely to leverage a HELOC for renovations. 59% of those surveyed listed "home upgrade/renovation" as the most likely use for their HELOC funds.
More than half of American homeowners (52%) say they are concerned about their home's ability to meet their family's space or lifestyle needs in the next year, and nearly a fifth (18%) say they settled for a less desirable home over the last two years because housing prices were at an all-time high.
"With sustained housing shortages, elevated prices and rising interest rates, many potential buyers have been edged out of the housing market. For those who find themselves staying put, a HELOC can not only help them improve their current quality of life through a renovation, but it can also add long-term value to their homes," added Sidi.
loanDepot's new digital HELOC gives homeowners a powerful option for addressing inflation and rising consumer debt with digital ease, convenience and speed to funding, with a timeframe from application to closing in as little as seven days. Most customers can get a no-hassle, online rate quote in less than five minutes and can pre-qualify with no adverse impact to their credit scores. The fully digital application makes it fast and easy to get started and manage the entire loan process from start to finish online.
Learn more and apply for a loanDepot HELOC today at loanDepot.com/HELOC.
Results are from a Prodege survey conducted online in November 2022 among a demographically representative sample of 1,001 U.S. homeowners, aged 18 and older.
loanDepot (NYSE: LDI; NMLS # 174457) is an equal housing lender and digital commerce company committed to serving its customers throughout the home ownership journey. Since its launch in 2010, loanDepot has revolutionized the mortgage industry with a digital-first approach that makes it easier, faster and less stressful to purchase or refinance a home. Today, as one of the nation's largest non-bank retail mortgage lenders, loanDepot enables customers to achieve the American dream of homeownership through a broad suite of lending and real estate services that simplify one of life's most complex transactions. With headquarters in Southern California and offices nationwide, loanDepot is committed to serving the communities in which its team lives and works through a variety of local, regional and national philanthropic efforts.
VP, Public Relations
SOURCE loanDepot, Inc.