As property values continue to rise, homeowners have become more likely to invest in their homes. Home renovations are beginning to pick up and a home equity line of credit has become an increasingly attractive way to finance renovations, HousingWire reports.
TD Bank conducted a survey and discovered 32 percent of respondents said HELOCs are attractive because the loans allow them to borrow as needed over time and 24 percent said they were attractive because they provide greater flexibility for use of the loan. Kitchens and bathrooms are the renovations most homeowners are interested in.
Additionally, Millennials are more likely than any other generation to have a HELOC, at 30 percent, compared to the 16 percent of Gen Xers and the 12 percent of baby Boomers and 53 percent of Millennials said they would like to use a HELOC to renovate a home.