Homeowners are increasingly considering tapping into their home equity, especially in light of the pandemic-driven housing boom that has led to record levels of home equity. A recent survey by Bankrate reveals that 55% of homeowners believe using home equity for home improvements or repairs is a wise decision. However, opinions vary significantly across different demographics, particularly among generations. Younger homeowners, especially millennials, are more likely to view tapping home equity for discretionary spending—like vacations or big-ticket purchases—as acceptable, while older generations tend to be more cautious. In fact, 18% of homeowners feel there is no good reason to access home equity at all. The article also outlines good, questionable, and poor uses of home equity, emphasizing that while home improvements and debt consolidation can be beneficial, using equity for everyday expenses or luxury items is generally discouraged. Understanding these nuances can help homeowners make informed financial decisions.
Read the full article here.