Homeowners wanting to spruce up their homes before the holidays or make some retrofits heading into the harsher winter months are turning to their home equity to pay for renovations.
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Eighty percent of homeowners with an existing home equity line of credit say they are planning home renovations this upcoming winter, and they’re dipping into their home equity to fund it, according to TD Bank’s Home Equity Holiday Pulse survey of more than 1,000 American homeowners.
Survey respondents said they had an average HELOC of more than $84,000, and 51 percent said they planned to spend at least $50,000 of that money on renovations for their home.
“Immediate access to low-interest funds through a HELOC gives homeowners peace of mind to adequately prepare for any season, whether they need a new roof or updated insulation,” says Mike Kinane, head of consumer lending for TD Bank. “Using a HELOC to make renovations during the winter is a smart, cost-effective option for homeowners because they can take advantage of reduced prices on materials during annual holiday sales, and access a larger pool of contractors who may now be working on more flexible off-season schedules.”
The top three most popular uses of HELOC funds, according to the survey, are home renovations (32 percent); emergency funds (14 percent); and education expenses (12 percent)