Millennials Are Twice as Likely as Boomers to Take out a Home Equity Loan
August 24 2016 - 9:00AM
Business Wire
Older millennials, ages 30-34, who own a home are twice as
likely as baby boomers, ages 55-64, to take out a home equity loan,
according to a survey commissioned by Discover Home Equity
Loans.
The survey reveals that of the 64 percent of older millennials
who own a home, 51 percent have used a home equity loan, compared
to only 26 percent of baby boomers who own a home.
“Homeowners who have built equity in their homes have the
opportunity to leverage their financial asset to help them pay down
debt, update their home or pay for major expenses,” said TJ
Freeborn, director of operations strategy for Discover Home Equity
Loans. “Home equity loans are a viable option homeowners may want
to consider, especially because they offer perks like a fixed rate
for the life of the loan and the potential for the interest to be
tax deductible.”
Older millennials and boomers view the purpose of their homes
differently. Millennials are more likely than boomers to use their
home as a financial asset by selling it to make money (27 percent
vs. 13 percent). While a quarter of older millennials see their
home as an investment property, just seven percent of baby boomers
feel the same way.
Additional survey findings include:
- Home remodels, 45 percent, and debt
consolidation, 36 percent, are the main uses of home equity loans
among homeowners of all ages.
- Older millennials as compared to
boomers are much more likely to use home equity loans for emergency
cash, 42 percent vs. 14 percent.
- Millennials are more likely than
boomers to use a variety of resources to determine their home’s
value:
- More millennials turn to their friends
or family, 39 percent vs. 16 percent of boomers, a financial
advisor, 38 percent vs. 10 percent, or go online to use a bank,
financial or real estate website, 34 percent vs. 25 percent.
- Millennials are less likely to use
their realtor, 37 percent vs. 48 percent, than boomers.
About the Survey
The national survey of 1,428 consumers was commissioned by
Discover Home Equity Loans and conducted by Toluna, an independent
survey research firm, between March 21 - 23, 2016. The maximum
margin of sampling error was ±5 percentage points with a 95 percent
level of confidence.
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking and
payment services company with one of the most recognized brands in
U.S. financial services. Since its inception in 1986, the company
has become one of the largest card issuers in the United States.
The company issues the Discover card, America's cash rewards
pioneer, and offers private student loans, personal loans, home
equity loans, checking and savings accounts and certificates of
deposit through its direct banking business. It operates the
Discover Network, with millions of merchant and cash access
locations; PULSE, one of the nation's leading ATM/debit networks;
and Diners Club International, a global payments network with
acceptance in more than 185 countries and territories. For more
information, visit www.discover.com/company.
National Survey of 1,428 Adults Conducted March 21-March 23,
2016 By Toluna Margin of Sampling Error, +/- 5 percentage points
with a 95% level of confidence Commissioned by Discover Home Equity
Loans
Do you own or rent your home? (Select
one)
Total(Qualify: 30+ owned home for 3+
years)
Which age range do you fall within?
(Select one)
30-34 35-44 45-54 55-64
65 and over Own 66.41% 64.14% 62.87%
63.60% 69.33% 79.51% Rent 29.48% 31.17%
31.44% 32.80% 27.56% 18.73% Other
4.11% 4.68% 5.69% 3.60% 3.11%
1.77%
Now that you've been in your home for a
few years, which of the following describes how you perceive your
home now? (Select all that apply)
Total(Qualify: 30+ owned home for 3+
years)
Which age range do you fall within?
(Select one)
30-34 35-44 45-54 55-64
65 and over It is an investment property 11.76%
24.73% 10.36% 10.10% 7.29% 5.69% I am
emotionally attached to it 29.97% 29.82%
27.17% 27.61% 31.94% 35.55% It is just a
temporary residence 8.33% 20.00% 9.80%
5.05% 4.51% 0.47% I plan to live in it for many years
43.91% 34.91% 36.13% 48.82%
47.22% 57.35% I am excited to make lasting memories in my
home 28.36% 30.18% 26.33% 31.99%
29.51% 22.75% It is a starter home until I need to expand
10.71% 25.09% 17.37% 5.39% 1.74%
0.47% I don't love it, but it is what I can afford at this
time 13.31% 18.55% 17.93% 12.46%
9.03% 5.69% I imagine my grandchildren visiting me here one
day 18.14% 22.91% 15.13% 16.84%
19.79% 16.59% It is a house that needs many upgrades
20.80% 24.00% 22.13% 21.21% 21.53%
12.80% It is a house I plan to sell to make money
15.13% 26.55% 15.97% 8.42% 12.50%
11.85% None of these fit how I view my home 5.81%
2.55% 4.20% 6.06% 8.33% 9.00%
Which of the following people and
resources do you turn to for learning more about the value of your
home? (Select all that apply)
Total(Qualify: 30+ owned home for 3+
years)
Which age range do you fall within? (Select one)
30-34 35-44 45-54 55-64 65 and over
Realtor 41.60% 36.73% 36.69% 40.74%
48.26% 48.34% Banker 22.62% 32.73%
23.25% 19.53% 22.22% 13.27% Financial
advisor 18.49% 37.82% 23.25% 10.10%
9.72% 9.00% Friend/family 23.81% 38.91%
29.69% 18.52% 15.97% 12.32% Print media
(newspapers, magazines, etc.) 12.25% 20.36%
13.73% 7.07% 7.29% 13.27% Online (bank,
financial, or real estate websites) 28.78% 33.82%
34.73% 25.93% 25.35% 20.85% Online
media (newspapers, magazines, etc.) 14.01% 27.27%
16.81% 9.09% 8.33% 6.64% Other
9.17% 6.55% 6.16% 14.14% 9.72%
9.95% None of these 13.94% 4.36% 12.04%
18.18% 15.62% 21.33%
Have you ever taken a home equity loan
against your home? (Select one)
Total(Qualify: 30+ owned home for 3+
years)
Which age range do you fall within? (Select one)
30-34 35-44 45-54 55-64 65 and over Yes
29.83% 51.27% 29.41% 19.87%
25.69% 22.27% No 67.51% 43.64% 66.67%
77.78% 73.61% 77.25% Not sure 2.66%
5.09% 3.92% 2.36% 0.69% 0.47%
How have you used a home equity loan?
(Select all that apply)
Total(Qualify: 30+ owned home for 3+
years)
Which age range do you fall within? (Select one)
30-34 35-44 45-54 55-64 65 and over
Debt consolidation 36.15% 30.50% 39.05%
52.54% 36.49% 25.53% Home remodel 45.07%
41.13% 45.71% 44.07% 55.41%
40.43% Pay off student debt 15.02% 26.24%
19.05% 3.39% 5.41% 2.13% Emergency cash
27.23% 41.84% 29.52% 16.95% 13.51%
12.77% Vacation 25.12% 43.26% 32.38%
10.17% 4.05% 6.38% Wedding 17.37%
31.21% 19.05% 13.56% 1.35% 2.13%
Medical expenses 22.07% 36.17% 25.71%
13.56% 5.41% 8.51% Other 14.32% 3.55%
3.81% 27.12% 22.97% 40.43%
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DiscoverRob
Weiss224-405-6304robertweiss@discover.com@Discover_News
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