Two factors are making now an opportune time to consider home equity lending.  First, many homeowners have refinanced their first mortgages in recent years to take advantage of record low rates.  These borrowers are not likely to want to refinance their existing mortgages to borrow more against their home and forfeit their low rate.  The second factor is that home prices are now at their highest levels since 2009.  Thus, many homeowners now have available equity in their homes.  In astrological terms, the housing stars are aligned to create lending opportunities.

Traditionally when refinances are on the decline and market values are increasing, the market is ripe for home equity lines of credit.

With the holidays fast approaching homeowners have lots of reasons to use the equity in their homes . . .

  • Fix up an outdated home to host the family holiday gathering
  • Consolidate debt into a lower interest package
  • Develop a plan to eliminate medical expenses through consolidation
  • Manage monthly payments across real property from higher interest loans

For banks and credit unions, your best prospects for new home equities are your existing mortgage customers with available equity without a home equity currently.  A simple letter explaining the benefits of a home equity could result in millions of dollars of new outstanding balances for your financial institution prior to year end.  If you’ve got extra marketing dollars to use before 2014, a prescreened home equity campaign could equate to a favorable return on your investment.

What are you waiting for?  Now is the time to capitalize on this opportunity to grow your home equity outstandings and deepen relationships with existing customers.

Diane Trout-Cummins comes from a 25 year career in bank marketing before joining SourceLink. A Certified Financial Marketing Professional from the American Bankers Association, she is a past president of the Indiana Chapter Bank Marketing Association and past chair of the Bank Marketing Association Chapter Leadership Board. Diane can be reached at