Jumbo borrowers take home equity lines of credit to buy boats, cars

More jumbo borrowers are taking advantage of home value appreciation by opening home equity lines of credit and using them to finance some fun, the Wall Street Journal reported.

Wells Fargo boosted its overall home equity lending to $2.2 billion in the second quarter, up from $1.5 billion in the first quarter.

“The jumbo borrower is more likely to pull out money for a recreational purchase — a boat, a third car, a sports car, improvements on a second home,” David Hall, president of Troy, Mich.-based Shore Mortgage told the Journal.

Source: WSJ