Consumers Favor Credit Lines Over Second Loans

Consumers favor home equity lines of credit over conventional second mortgages, according to a study conducted by BenchMark Consulting International.

In fact, credit-line dollars exceeded second-loan dollars by a factor greater than two to one, the study found. Half of the borrowers who obtained both line and loan products reported that they needed to refinance debt while 25% cited home improvement as the reason for obtaining a home equity loan.

Overall, about 10% of deposit customers also have a home equity account, the study found.

The study included data from June 2000 to June 2001 and included commercial banks, bank holding companies and thrifts and savings banks.