Ty Pennington spoke at the Maricopa County Home & Garden Show about his experiences working on “Trading Spaces” and “Extreme Makeover: Home Edition.” Arizona Republic
Most metro Phoenix homeowners have equity again.
About 5 percent of all Phoenix-area homeowners are underwater with their mortgages now, compared to 50 percent in 2011.
And judging by the many big construction dumpsters in front of homes in Valley neighborhoods, homeowners are tapping that equity to do home-improvement projects.
Arizona homeowners accumulated an average of $16,000 in home equity over the past year, according to real estate data firm CoreLogic. That’s enough to redo some kitchens.
TV home improvement guru Ty Pennington â€” from “Trading Spaces” and “Extreme Makeover: Home Edition” â€” was in the Valley for theÂ Maricopa County Home & Garden Show which ran through Sunday at WestWorld in Scottsdale. He had some advice for homeowners who are remodeling.
Now that more metro-Phoenix homeowners don’t owe more than their home is worth, lenders are more aggressive about home equity loans.
Most Valley homeowners regularly receive email, mail, texts and calls for offers to take out second mortgages.
We know from the boom and bust that using our homes as piggy banks for the wrong reasons can hurt us.
A recent survey from financial-research firm Bankrate found three-fourths of homeowners thinking about tapping money from their house would likely use it for renovations or repair. This move is preferred by consumer-finance experts because it can add value back into a home.
But about 44 percent of homeowners surveyed were thinking about using their home equity to consolidate debt, according to Bankrate. That move makes sense only if credit card or other debt is costing homeowners more than the interest rate on a second mortgage.
Another 31 percent would like to tap equity to pay for education costs. Since student debt is at record levels, this isn’t a big surprise.
The biggest concern was the 22 percentÂ of millennial homeowners surveyed who thought borrowing from their equity is a good option for paying day-to-day bills.
Catherine Reagor, housing reporter for azcentral and David Meek of Keller Williams Arizona Realty discuss tips for Phoenix’s first-time homebuyers. Carly Henry, The Republic | azcentral.com
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