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Article: Home Equity Lending: Where's the Ceiling?
- Article from:
- American Banker
- Article date:
- February 14, 2005
- Author:
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Home equity loans and lines of credit continue to grow in popularity, and banks have gradually gained an edge in consumer lending by pushing those products.
One reason home equity credits are so popular with consumers is that their rates are low, making them more attractive than -- and increasingly a substitute for -- credit cards.
According the Federal Reserve, the outstanding value of home equity loans and lines rose 68% from yearend 2000, to $827 billion on Sept. 30, the most recent figure available. And the untapped amount customers could borrow is estimated to be in the trillions of dollars.
"A lot people we speak with talk about a line of ...