Credit-card company adds home equity lineMarch 14, 2013 @ 8:55 am
Looking to benefit from rising home values, credit-card lender Discover Financial Services announced it will begin offering home-equity loans in the second half of this year.
Discover says that about 80 percent of its customers are homeowners. It plans to offer fixed-rate, closed-end loans valued between $25,000 to $100,000. The home equity loans will first be marketed to existing customers before eventually becoming available to others.
In recent months, banks have been reporting increases in home-equity lending due to the rise in home values that has given more home owners equity.
"My view is that in many places in the country, the housing market is finally stabilizing," said David Nelms, chairman and chief executive of Discover. "I think that there are people who do have equity in their homes, and it's a much more careful time today than it was during the 2005-2007 housing market."
Last year, Discover began originating mortgages online. Its home-loan business has originated more than $2 billion in mortgages to date.
Bonneville Media encourages site users to express their opinions by posting comments. Our goal is to maintain a civil dialogue in which readers feel comfortable. At times, the comments can descend to personal attacks. Please do not engage in such behavior. We encourage your thoughtful comments which: have a positive and constructive tone, are on topic, are respectful toward others and their opinions. Bonneville reserves the right to remove comments which do not conform to these criteria.