mortgage

5 housing trends for spring

Mortgage » 5 Housing Trends Spring 2014

Homeowners cash out with home equity loans

Homeowners in many parts of the country have regained some of the equity lost during the housing crisis. As home values continue to increase, they seem to be getting more comfortable with the idea of borrowing against their equity.

"We are getting a lot of phone calls regarding home equity loans," Roth says. "And we are just starting to see now more and more lenders come into the market offering home equity loans."

Lenders are more careful now

Home equity loans were popular during the housing boom as many homeowners cashed out on rapidly increasing home values. After the market crashed, lenders became much more conservative on the requirements and terms for home equity lines of credit and home equity loans.

Homeowners looking to cash out with an equity loan generally can only borrow up to 80 percent of the value of the home.

"And it's a full underwrite -- the same as getting a mortgage," Roth says.

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