More Consumers Tap Home Equity

Not only are consumers borrowing to finance new homes, but homeowners are also tapping into their equity in existing homes. According to a study by the Consumer Bankers Association, the average size of new home equity loans fell to $55,307 in 2002, down from $58,832 the previous year. Forty-four percent of the borrowers were aged 35-49, and 31 percent were aged 50-64. The average income of households seeking home equity loans in 2002 was $83,998, up from $67,433 the previous year. Over the same period, the appraised value of the home pledged as security grew to $208,556 from $188,293. Copies of the full study are available from the CBA, 1000 Wilson Blvd., #2500m Arlington, VA 22209. ($300 for members; $495 for nonmembers)