PrimeLending Launches New Home Equity Loan Offering Homebuyers More Financial Flexibility
PrimeLending, a subsidiary of Hilltop Holdings (NYSE: HTH), has introduced a new home equity loan product designed to provide homeowners with financial flexibility. This loan enables homeowners to convert their home equity into cash, which can be used for a variety of purposes such as consolidating high-interest debt, covering expenses, or managing personal finances.
According to the Federal Reserve Bank of New York, the average credit card balance has increased by 10% year-over-year, reaching $1.129 trillion in Q4 2023, with an average APR of 21.19%. In contrast, homeowners have nearly $30 trillion in home equity, as reported by the Federal Reserve Bank of St. Louis. The new loan product aims to leverage this equity, offering a fixed-rate repayment over a 30-year term.
PrimeLending emphasizes its customer-centric approach, boasting a 96% customer satisfaction rating for 2023. The company serves customers across all 50 states, providing a range of mortgage and home equity solutions.
- New home equity loan product offers financial flexibility.
- Homeowners can convert home equity into cash.
- Fixed-rate repayment over 30 years.
- PrimeLending has a 96% customer satisfaction rating.
- PrimeLending operates in all 50 states.
- None.
The introduction of PrimeLending's new home equity loan product stands out in the current financial context. With credit card balances reaching
A key consideration for investors is the potential for increased revenue streams for PrimeLending. As homeowners increasingly look for ways to consolidate high-interest debt, the demand for this home equity loan could rise, bolstering loan origination volumes and fee income for PrimeLending.
Additionally, the large volume of accumulated home equity in the market — nearly
From a market perspective, PrimeLending’s new home equity loan can attract a significant segment of financially stressed homeowners. The product’s flexibility, allowing homeowners to use the funds for various purposes like debt consolidation, home improvements, or medical expenses, aligns with current consumer needs driven by economic challenges.
This move also positions PrimeLending competitively within the mortgage lending industry by expanding their product suite and potentially gaining market share. The emphasis on customer satisfaction, highlighted by a
However, it is vital to monitor consumer credit performance and housing market trends. Any downturn in the housing market could affect the perceived value of home equity, potentially impacting the attractiveness and risk profile of such loans. Additionally, while the product can provide immediate financial relief, there is always the risk that borrowers might increase their overall debt burden, leading to longer-term financial difficulties.
As Americans continue to wrestle to make ends meet, many have turned to using credit cards to cover necessities, such as food, gas, utilities, and medical expense. According to the Federal Reserve Bank of
“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.”
In total, American homeowners have accumulated nearly
With a PrimeLending home equity loan, homeowners can access a portion of their home's value without having to sell it. Simply put, homeowners can borrow money using their home equity as collateral and repay the loan at a fixed-rate over a 30-year term. Homeowners receive the cash as a lump sum upfront to use however they choose, such as consolidating debt, making home improvements, or covering tuition, medical or unplanned expenses.
Whether looking to buy, refinance, renovate or build a home, the PrimeLending team works alongside our customers in all 50 states. PrimeLending’s customer-centric approach blends unmatched mortgage expertise, product choice and digital convenience to deliver a rewarding homebuying experience. Delivering on this promise since 1986, PrimeLending is proud to consistently earn a
1All credit decisions for brokered products will be made by a third party. Restrictions and limitations apply.
2Survey administered and managed by an independent third party following loan closing.
All loans subject to credit approval. Rates and fees subject to change.
©2024 PrimeLending, a PlainsCapital Company (PrimeLending). (NMLS: 13649) Equal Housing Lender.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240618994779/en/
Mandy Jordan
972-852-8235 | mjordan@primelending.com
Source: PrimeLending
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