Free smoke detectors. Hot rotisserie chicken and a side of beans. Today, the staid corner banks are offering up enticements to get people to borrow against their homes. What may be a disadvantage for profit-hunting shareholders is often a consumer's dream, and nowhere is that paradox more evident than in the home equity lending business.
Lenders consistently say it's a buyer's market out there for lines of credit.
And that leads to widespread industry promotions because consumers can get away with demanding more than flexibility and tax-deductible interest. Ky.-based Bourbon Bancshares Inc., which operates Kentucky Bank . We have branches in seven counties, and in all seven of those counties, it probably doubled the volume. As for introductory rates, borrowers at Commerce get either a 7.9 percent or 8.4 percent rate for one year, depending on how much of their home's value they want to access, for instance. At Charter One Financial Inc., on the other hand, customers can opt for a 6.5 percent rate during the first six months.