Lender offers 30-year fixed-rate
PrimeLending, a subsidiary of PlainsCapital Bank, has introduced a new home equity loan product.
The Dallas-based residential lender said its new offering allows homeowners to convert their home equity into cash, providing them with a financial tool to manage expenses, consolidate high-interest debt, and cover other financial needs.
“At PrimeLending, we offer homeowners more than just a mortgage – we give them a wide range of options, plus our expertise and guidance, to more confidently manage their personal finances,” PrimeLending chief production officer Tim Elkins said in the company’s media release. “Our new home equity loan affords homeowners the flexibility to tap into their home equity as an option to help them achieve their financial goals.”
PrimeLending’s new home equity loan enables homeowners to borrow against their home equity and repay the loan at a fixed rate over a 30-year term. The loan is disbursed as a lump sum, which can be used for various purposes such as debt consolidation, home improvements, or covering tuition and medical expenses.
According to a recent CoreLogic report, home equity increased 9.6% year over year, resulting in a collective gain of $1.5 trillion for homeowners. On average, each borrower has experienced an equity boost of $28,000 since the first quarter of 2023.
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However, many Americans have turned to credit cards to cover essential expenses amid ongoing economic challenges. The Federal Reserve Bank of New York reported that average card balances rose 10% from the previous year, reaching $1.129 trillion in the fourth quarter of 2023. The average annual percentage rate (APR) for all credit cards during the same period was 21.19%, the highest since tracking began in 1994.
PrimeLending offers a range of services, including buying, refinancing, renovating, and building homes. The company operates in all 50 states.
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