Think twice before taking out a home equity loan

Gary Sandler

Are you thinking of buying a new vehicle or installing an indoor pool? You may need cash for college tuition, rising debts, or an extreme renewal for your family pet. You may want to improve your home by renovating or adding more space. These and other years can be financed using a home equity loan or a home equity credit line (HELOC). But is it wise to use money – regardless of the occasion? Maybe, maybe not.

According to CoreLogic Homeowner Equity Insights report for the first quarter of 2021 (https://www.corelogic.com/press-releases/nationwide-homeowner-equity-gains-hit-1-9-trillion-in-q1-2021-corelogic-reports/), Homeowners in the US with mortgages (about 62% of all real estate) have seen their equity increase by a total of nearly $ 1.9 trillion since the first quarter of 2020, an increase of 19.6%, from year to year “. The report also revealed that the average New Mexico homeowner earned $ 26,000 in equity over the same period. CoreLogic is a leading global provider of proprietary information, analytics and data solutions.

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