A new national consumer survey conducted by FirstClose™, Inc. has shed light on the lack of awareness among homeowners regarding the financial advantages of leveraging home equity for various purposes. According to the survey, many consumers do not fully understand how home equity can be utilized to reduce debt and improve financial stability.
Tedd Smith, CEO of FirstClose, emphasized the importance of educating consumers about the benefits of leveraging home equity, stating, "The findings of this survey underscore the critical gap in consumers' understanding of the financial benefits of leveraging their equity." Smith highlighted the significant amount of tappable home equity in the United States, which could potentially be used to pay down credit card debt amounting to over $1.14 trillion.
The survey revealed that consumers lack awareness of interest rates associated with home equity products and are willing to tap into their home equity without fully understanding the implications. Smith pointed out, "If a consumer with an average balance of $6,500 made only the minimum payment it would take 13 years and cost roughly $11,800 to pay off the debt completely."
Smith also highlighted the role of lenders in educating homeowners about responsible use of home equity, especially in the current economic climate. He stated, "Lenders are uniquely positioned right now, while rates are still on the high end, with no sign of coming down anytime soon, to educate homeowners on the advantages of utilizing home equity responsibly."
FirstClose, Inc., headquartered in Austin, Texas, aims to provide fintech solutions to HELOC and mortgage lenders across the nation. The company's mission is to increase profitability and reduce costs for mortgage lenders by offering comprehensive guidance and resources to empower homeowners in making informed financial decisions.
For more information about the survey findings and FirstClose's solutions, visit firstclose.com.