Wednesday, August 24, 2016

Millennials are tapping home equity for vacations and emergency cash

http://www.msn.com/en-us/money/realestate/millennials-are-tapping-home-equity-for-vacations-and-emergency-cash/ar-BBvZ6dB

Well this seems to not be a great thing....

The Discover report found that 51.3% of those homeowners between 30 and 34 (who have owned for three years of more) have taken a home-equity loan out against their home.

The most popular reasons the youngest group took the loans were vacations (43.3%) and emergency cash (41.8%), followed by home remodels (41.1%), medical expenses (36.2%) and weddings (31.2%). For the other age groups, debt consolidation and home remodels were the top responses.

“Home-equity loans should never be used for something like a vacation or other short-term wants,” wrote Ryan Fuchs, a financial planner with Ifrah Financial Services in Little Rock, Ark., in an email interview.

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