More borrowers using home-equity loans for renovations

With the COVID-19 pandemic keeping Americans indoors, more homeowners are taking out the loans to fund home improvements, according to a new study

More borrowers using home-equity loans for renovations

With the coronavirus pandemic keeping Americans indoors, more homeowners are taking out home-equity loans in order to fund renovations, according to a new study by LendingTree.

While the total number of home-equity loan applications as dropped since the beginning of the year, those who do apply are more likely to use the loan to pay for home improvements, LendingTree reported. In January, 37.3% of home-equity loans were used to fund home improvements. As of April, that share was up to 45.9%.

“To analyze where home equity loans are most likely to be used for home improvements, LendingTree ranked the nation’s 50 largest metros based on what share of home equity loans in each area are designated for home improvement,” LendingTree said.

Milwaukee, Louisville, Ky., and Columbus, Ohio, were the metros with the largest share of home-equity loans meant to fund home improvements, according to LendingTree. In Milwaukee, more than two-thirds of home-equity loans were earmarked to fund home improvements.

The share of loans designated for home improvements grew between January and April in all by eight metros, according to LendingTree.

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