IE Business Daily Business news for the Inland Empire.
More Inland Empire homeowners are pulling equity out of their houses and using the money to fix up their houses.
Some of the 23 credit unions based in the Inland Empire are issuing more loans that involve home equity, including home equity lines of credit, second mortgages and cash-out refinance mortgages, the California Credit Union League reported this week.
Among credit unions in Riverside and San Bernardino counties, originations for home equity lines of credit and second mortgages combined increased 71 percent to $15.3 million year-over-year during the second quarter, according to the credit union league.
That means more people are looking to upgrade their houses rather than buy a new one, a trend that is probably due to higher housing prices, said Dwight Johnston, the credit union league’s chief economist.
“People who have built up equity in their houses are starting to take advantage of it, and that’s a good thing,” Johnston said. “They’re also being cautious about it, which is also a good thing. Overall, the trend is a good thing for the [housing] market.”
The trend toward remodeling and adding to houses should continue if home prices continue to rise, Johnston said.
