Champion
Mortgage Survey Indicates That Most Homeowners Have Never
Considered Home Equity Products
Seventy-Three
Percent of Respondents Say That an Interest Rate Rise Would Not
Reduce Appeal
PARSIPPANY, N.J., July 14 /PRNewswire/ -- Potential for additional
growth in the home equity market remains substantial. In a
survey released today by Champion Mortgage(R), 58 percent of
homeowners said that they have never had a home equity loan or
credit line -- and have never considered applying for one.
In addition, 56 percent of the homeowners surveyed nationwide
stated that they would not consider using the equity in their
homes to consolidate high levels of debt. "This finding
suggests that even after a history-making mortgage boom over the
last four years, there is a substantial opportunity to educate
consumers on the merits of using the equity of their home,"
said economist John M. Urbanchuk, Director, LECG, a leading
economics consulting group.
Among homeowners who have either credit lines or loans or
considered applying for them, home improvement projects were
identified as the leading use of these funds at 57 percent. The
next most common uses were to consolidate outstanding debt at 29
percent and paying credit card bills at 25 percent. Outstanding
debt may include student loans, medical bills and automobile
loans.
This new national survey was conducted by International
Communications Research (ICR), an independent market research
firm. ICR polled a national sample of 748 homeowners. The
margin for error for the results is plus or minus 3.6 percent.
Seventy-three percent of the homeowners surveyed indicated that a
slight rise in interest rates would have no impact on their
willingness to apply for new home equity loans or lines of credit.
Twenty-four percent said that an interest rate increase
would make them less likely to apply.
"From a historical perspective, interest rates are still near
all-time lows," explained Urbanchuk. "Homeowners
still have the same needs - to pay for their child's education,
make home improvements, and life's other big expenses."
"Home equity credit lines or loans may be an effective credit
management tool that can certainly help many homeowners who
haven't yet considered them," Urbanchuk added.
"These survey results suggest that there is a clear
opportunity to educate consumers nationwide about how home equity
options could benefit them," said Michael Cacciaguida,
President of Champion Mortgage. "Opportunities for
growth remain, even despite the end of the refinancing boom,"
Cacciaguida added.
ABOUT
CHAMPION MORTGAGE
Champion Mortgage, a division of Key Bank USA, National
Association, is one of the largest national retail mortgage
lenders, providing lending solutions to homeowners in 27 states.
Champion Mortgage's expertise in mortgage solutions allows it to
provide unparalleled one-on-one customer service, as well as the
right solutions and right loans* to best meet its customer's
needs. Champion's Mortgage's programs help homeowners
consolidate debt, purchase homes, refinance existing mortgages,
and finance home improvements and life's other big expenses.
For more information about Champion Mortgage's products and
services, call 1-800-CHAMPION(R) or visit champion.com.
ABOUT
KEYCORP
Cleveland-based KeyCorp is one of the nation's largest bank-based
financial services companies, with assets of approximately $84
billion. Key companies provide investment management, retail
and commercial banking, consumer finance, and investment banking
products and services to individuals and companies throughout the
United States and, for certain businesses, internationally. The
company's businesses deliver their products and services through
KeyCenters and offices; a network of nearly 2,200 ATMs; telephone
banking centers (1.800.KEY2YOU); and a Web site, Key.com(R), that
provides account access and financial products 24 hours a day.
* All loan/line of credit products are subject to credit approval.
Champion Mortgage is an Equal Housing Lender.
SOURCE Champion Mortgage
CO: Champion Mortgage; International Communications
Research; KeyCorp
ST: New Jersey, Ohio
SU: SVY
Web site: http://www.champion.com
http://www.prnewswire.com
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