Home equity loans
money.cnn.com
Outstanding debt for home equity lines of credit increased nearly 11 percent during the third quarter, according to preliminary numbers released Tuesday by the Federal Deposit Insurance Corporation.
The amount of outstanding debt for home equity lines of credit, or HELOCs, was nearly $460 billion at the end of the third quarter, a 46 percent increase from the same time in 2003.
"Homeowners have been pretty aggressive in tapping their home equity," said Richard A. Brown, chief economist for the FDIC in an interview with CNN/Money last month. In 2003 alone, they tapped more than $300 billion of home equity via lines of credit and cash out refinancing, he said, or about 4 percent of personal income. "That's a big number."
It should come as no surprise that home equity lines continue to grow in popularity. These loans, which allow you to borrow against the equity in your home any time, for any purpose just by writing a check, are cheap, convenient and widely available.
Still, the numbers are staggering.
The average line of credit available between June 2003 and June 2004 was about $77,500, according to the Consumer Bankers Association, up from about $69,500 the previous year. |
