Homeowners are tapping into equity at the fastest rate in eight years, thanks to rising home prices. And millennials are leading the pack of those who are cashing in.
In 2016, the number of homeowners with potentially “tappable” equity rose to 39.5 million—those are borrowers who have at least 20 percent equity in their homes, according to Black Knight Financial Services.
Millennials, in particular, are turning to HELOCs—home equity lines of credit—more so than Generation X members or baby boomers, according to a recent survey by TD Bank. More than a third of millennials say they’re considering applying for a HELOC in the next 18 months. That is more than double the rate than Generation X and nine times higher than baby boomers.
“We are a little surprised about that,” Mike Kinane, general manager of home equity products at TD Bank, told CNBC.
Source: Millennials Want Home Equity Access via Right Relevance