Homeowners in These States Get the Highest Rate of Home Improvement Loans

PHOENIX (Stacker) – The number of home improvement projects increased in the United States during COVID-19 as people stayed home more often and needed extra space, according to Harvard’s Joint Center for Housing Studies. In fact, Americans spent $367 billion on home improvement projects in 2021. Whether building a new home office, replacing the roof, upgrading the plumbing, or creating an oasis in the backyards can require substantial funds. their projects.

A home improvement loan is money obtained from a lender to be used to repair, remodel or improve personal property. It is different from a home equity loan in that it is not based on the value a homeowner has accumulated in their home. Home improvement loans are not tied to a home’s equity, so interest rates are generally higher than on a home equity loan, and homeowners typically pay them off in five years or less.

This gives new homeowners – and those who haven’t paid off much of their mortgage – the chance to borrow money to tackle renovation projects. Home improvement loans also tend to get approved faster, so homeowners with a big emergency repair can take advantage of this type of loan to get the job done. Home improvement loans have been an essential financial tool during this home improvement boom. More than one million home improvement loans were taken out across the country in 2021, totaling $131 billion in borrowings.

Portland Real Estate analyzed loan origination data from the Consumer Financial Protection Bureau to see which states had homeowners who took out the highest rate of home improvement loans in 2021, the latest information available. The share was determined by dividing the number of owner-occupied homes in each state by the number of home improvement loans issued. The average loan size was calculated by dividing the total dollar amount of home improvement loans taken out in each state by the number of loans taken out.

#15. New Jersey

  • Number of loans: 32,745
  • Share of houses with loans: 1.0%
  • Total amount lent: $4.44 billion
  • Average loan amount: $135,664

#14. Vermont

  • Number of loans: 2,687
  • Share of houses with loans: 1.02%
  • Total amount lent: $286.9 million
  • Average loan amount: $106,764

#13. Ohio

  • Number of loans: 48,502
  • Share of houses with loans: 1.03%
  • Total amount lent: $4.0 billion
  • Average loan amount: $82,464

#12. Florida

  • Number of loans: 82,289
  • Share of houses with loans: 1.04%
  • Total amount lent: $10.02 billion
  • Average loan amount: $121,751

#11. Pennsylvania

  • Number of loans: 60,798
  • Share of houses with loans: 1.19%
  • Total amount lent: $5.52 billion
  • Average loan amount: $90,860

#ten. Delaware

  • Number of loans: 4,528
  • Share of houses with loans: 1.22%
  • Total amount lent: $434.8 million
  • Average loan amount: $96,020

#9. Arizona

  • Number of loans: 33,798
  • Share of houses with loans: 1.28%
  • Total amount lent: $4.39 billion
  • Average loan amount: $129,895

#8. Massachusetts

  • Number of loans: 33,986
  • Share of houses with loans: 1.28%
  • Total amount lent: $5.32 billion
  • Average loan amount: $156,645

#seven. Oregon

  • Number of loans: 21,394
  • Share of houses with loans: 1.30%
  • Total amount loaned: $2.74 billion
  • Average loan amount: $128,013

#6. Washington

  • Number of loans: 39,108
  • Share of houses with loans: 1.35%
  • Total amount lent: $5.45 billion
  • Average loan amount: $139,358

#5. New Hampshire

  • Number of loans: 7,419
  • Share of houses with loans: 1.38%
  • Total amount lent: $856.1 million
  • Average loan amount: $115,387

#4. Colorado

  • Number of loans: 31,069
  • Share of houses with loans: 1.45%
  • Total amount lent: $4.16 billion
  • Average loan amount: $133,884

#3. Rhode Island

  • Number of loans: 6,518
  • Share of houses with loans: 1.57%
  • Total amount lent: $707.7 million
  • Average loan amount: $108,582

#2. Idaho

  • Number of loans: 14,160
  • Share of houses with loans: 2.18%
  • Total amount lent: $1.88 billion
  • Average loan amount: $132,540

#1. Utah

  • Number of loans: 25,227
  • Share of houses with loans: 2.51%
  • Total amount lent: $2.97 billion
  • Average loan amount: $117,877

This story originally appeared on Portland Real Estate and was produced and distributed in partnership with Stacker Studio. This article has been republished under a CC BY-NC 4.0 license

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