"After a decade of home price growth, many homeowners today are sitting on a mountain of equity. Tappable equity hit a record high in Q2 of this year, when 48 million mortgage holders reportedly had an average of $213,000 in accessible value. That growing equity has translated into a renewed interest in home equity (HE) products over the years. Homeowners are still largely leveraging these products to fund home renovations, but debt consolidation is a growing factor"
"Lenders must also position themselves to offer competitive products that meet the needs of their borrowers. Differentiating HE lending products is possible, and it starts with delivering faster turn times and a stronger consumer experience. In a foot race and in the lending industry, speed wins. There are certainly opportunities for lenders to edge out the competition when it comes to closing timelines on home equity products."
Homeowners now hold record tappable equity, with 48 million mortgage holders averaging $213,000 in accessible value in Q2. Growing equity has driven renewed demand for home equity products, primarily for renovations and increasingly for debt consolidation, which rose from 25% in 2022 to 39% in 2024. Lenders need competitive HE products that meet borrower needs, and differentiation hinges on faster turn times and improved consumer experience. Average closing times reached 38 days for HELOCs and 37 days for home equity loans in 2024, but automation can reduce timelines to as few as eight days. Instant title solutions and tech partnerships accelerate processing.
Read at www.housingwire.com
Unable to calculate read time
Collection
[
|
...
]