Ohio-Area Lenders See HELOC Use Rise to 42% as Homeowners Tap Equity for Debt Relief
Updated
Updated · businessjournaldaily.com · May 14
Ohio-Area Lenders See HELOC Use Rise to 42% as Homeowners Tap Equity for Debt Relief
4 articles · Updated · businessjournaldaily.com · May 14
Farmers National Bank said home equity loans and HELOCs now make up about 85% of its consumer lending production, up from 78% three years ago, with applications also climbing.
Nearly 42% of HELOC lines are now being used, up from around 35% over the past two-plus years, as borrowers fund home improvements, consolidate debt and keep credit available for emergencies.
Rates are helping sustain demand: Farmers put home equity loans near 6.25%, while 717 Credit Union said its 4.99% introductory HELOC offer is drawing Ohio homeowners even as some lenders keep pricing steady amid Fed uncertainty.
High credit-card rates in the 20% range, rising grocery and gas costs, and home-price appreciation are pushing more households to tap equity rather than refinance first mortgages locked in at lower pandemic-era rates.
Lenders said spring typically brings a pickup in applications, but demand still reflects broader economic caution, with borrowers generally taking smaller, purpose-driven loans instead of stretching for extra cash.
With household debt at a record high, is tapping home equity a sign of resilience or a prelude to a housing crisis?
As families convert credit card debt into HELOCs, are they unknowingly gambling their homes for short-term relief?