PrimeLending introduced a new home equity loan product that allows Americans to combat inflation and high credit card debt with the value stored in their homes.
Borrowers can convert home equity into cash, which they can use for anything, including managing finances, covering expenses, and consolidating high-interest debt.
Homeowners can access a portion of their home’s value and repay the loan at a fixed-rate over a 30-year term. The cash is distributed as a lump sum.
PrimeLending pointed to the financial strain Americans face every day as inflation remains elevated. Credit card balances are up as it gets harder to budget for daily necessities. At the same time, average APRs are at their highest point since the Fed began tracking them in 1994.
“At PrimeLending, we offer homeowners more than just a mortgage – we give them a wide range of options, plus our expertise and guidance, to more confidently manage their personal finances,” said Tim Elkins, PrimeLending’s Chief Production Officer.
“Our new home equity loan affords homeowners the flexibility to tap into their home equity as an option to help them achieve their financial goals.”
Nearly half of mortgaged properties in the U.S. were considered equity-rich in Q1 2024, meaning that the combined estimated amount of loan balances secured by those properties was no more than half of their estimated market values.
Though changing market dynamics have resulted in a declining number of equity-rich homes, plenty of homeowners are still in a position to benefit from equity lending products.
“Homeowner balance sheets continue to benefit in a huge way from the boom times in the form of elevated equity that can be used to help finance all kinds of things, from home renovations to business startups,” Rob Barber, CEO for ATTOM, said of the trend.
PrimeLending is a national home lender working in all 50 states for more than 35 years.
The company recently came under fire from the Department of Labor for allegedly firing employees who reported consumer fraud concerns.