With home prices at all-time highs, a new survey of 1,000 Americans from MeridianLink—a provider of modern software platforms for financial institutions and consumer reporting agencies—has found that 21% of respondents said they were likely to take out a home equity loan in the next 12 months, compared to just 8% of respondents who reported taking out a home equity loan in 2022.
While more than half of respondents (52%) said they do have a strong understanding of the home equity lending process, while 48% scored their understanding below a seven out of 10.
Moreover, 13% had no understanding at all (scoring a 1/10).
Although those under the age of 55 are more likely to take out a home equity loan in the next 12 months, they are less knowledgeable about how home equity loans work (30% scored a 1/10) compared to those over the age of 55 (only 9% scored a 1/10).
“For established homeowners with good credit, home equity loans can be a safe, predictable way to live well based on the equity you’ve built and earned to-date,” said Tim Wheeler, VP of Consumer Lending at Fortera Credit Union. “We could not be more pleased with our partnership with MeridianLink and our combined ability to meet the home equity needs of our joint members and customers."
Established in 1954, Fortera Credit Union is a full-service financial cooperative with more than 79,000 members, and $870 million in assets. Headquartered in Clarksville, Tennessee, Fortera serves members worldwide and within their primary service regions in Tennessee, Kentucky, Alabama, and Arkansas.
“For many consumers, a home equity loan or line of credit is an important resource, and we are proud to work with financial institutions to deliver the technology that powers frictionless lending experiences,” said Chris Maloof, President, Go-To-Market at MeridianLink. “We will continue to provide financial institutions, like Fortera Credit Union, with better technology, better service, and better solutions to consolidate and streamline applications from all channels, ensuring a world-class consumer experience.”