Home Equity Loans Making a Comeback

New York, NY, Feb. 4, 2011 -- Home equity lines of credit are making a comeback, according to a report by SmartMoney. If true, the trend could help the flooring industry as homeowners finance home improvement projects.

SmartMoney said that a growing number of banks around the country are making these loans again, although lending standards are higher.

In the Midwest, Associated Bank issued nearly three times more home equity loans in the second half of 2010 compared to the same period the year before. SunTrust Bank, which operates mostly in the south and Mid-Atlantic, has issued 25% more home equity lines of credit in the past six months compared to the first half of 2010.

The magazine reported that the average loan is about $75,000. Average interest rates on home-equity loans and HELOCs are 7.15% and 5.22%, respectively, according to the story.