Older millennials are twice as likely as baby boomers to take out a home equity loan, according to a new survey commissioned by Discover Home Equity Loans of nearly 1,500 people.
Of the 64 percent of older millennials (ages 30 to 34) surveyed who own a home, 51 percent have used a home equity loan compared to 26 percent of baby boomer home owners, the survey revealed.
“Home owners 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,” says TJ Freeborn, director of operations strategy for Discover Home Equity Loans.
Indeed, older millennials are more likely than baby boomers to tap home equity loans for emergency cash (42 percent versus 14 percent). Home remodels and debt consolidation, however, are the most common uses for home equity loans among all age groups.
Older millennials and boomers show a difference in how they view their homes. Millennials tend to view their home more as a financial asset by being able to sell it and make money (27 percent of millennials versus 14 percent of boomers). A quarter of older millennials view their home as an investment property; 7 percent of baby boomers do.
Millennials also are more likely than boomers to use several sources in trying to determine their home’s value, such as turning to friends or family (39 percent); a financial adviser (38 percent); or going online to use a bank, financial, or real estate web site (34 percent).
Source: Discover Home Equity Loans