RIVERWOODS, Ill.--(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.
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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% | ||||||
