ATLANTA Home improvement or repair continues to be the primary or traditional use for home equity lines of credit, according to research by Synergistics Research Corp.
As the housing recovery continues, the market for home equity credit is showing signs of improvement, the company said. Lenders are once again marketing home equity lines of credit and second mortgages focusing on the purposes for using these forms of credit.
In Synergistics’ “Twelfth Annual Home Equity Lending Monitor,” homeowners who have a home equity line of credit identified the purposes for which they have used their revolving line of credit. Most widely cited is home improvement or repair, reported by half of the holders. One-third have used it for emergency expenses or have used it in addition to their first mortgage to purchase their primary home. Debt consolidation is indicated by three in 10. One-fourth have used an equity line to purchase an automobile, truck, or van. Indicated by one in eight are appliance or furniture purchases and or education or tuition expenses. Not quite one-10th have used their line for financing the purchase of the primary home instead of using a first mortgage.
Overall, Synergistics said the purposes for which revolving equity lines have been used in the current wave of the Monitor are “fairly consistent” with prior findings.
