Is it a Good Time to Tap Into Your Home’s Equity?
Right now, homeowners across the U.S. have more equity than ever—about $11.5 trillion that can be borrowed without needing to sell their homes. That means if you own a home, you might be able to pull money from it while still keeping a good cushion of value (at least 20%) in place.
And with interest rates on home equity lines of credit (HELOCs) going down, now might be one of the best times in years to consider using your home’s value to your advantage.
But is now the right time to borrow, or should you wait? Let’s look at the numbers, the trends, and whether tapping into your equity makes sense for you.
Homeowners Are Holding Record Equity
According to new data from ICE Mortgage Technology:
U.S. homeowners have $17.6 trillion in total equity
$11.5 trillion of that is “tappable”—you can borrow it and still keep at least 20% equity in your home
The average homeowner has around $212,000 in tappable equity
48 million people with mortgages can access this equity—that’s the highest it’s ever been
Even with all this available equity, most homeowners haven’t touched it. In early 2025, only 0.41% of tappable equity was actually used. That’s way below the average from past years.
Borrowing Is Getting Cheaper
Another big change? HELOC rates have dropped. A few months ago, borrowing $50,000 through a HELOC would’ve cost about $412/month. Now it’s down to $311/month—a savings of over $100 each month.
And if interest rates continue to fall, as expected, we might see HELOC rates go even lower by 2026.
Why More People Are Looking at HELOCs
With rates dropping and equity rising, more homeowners are thinking about using a HELOC. According to a recent survey, 1 in 4 are considering it within the next year.
Here’s why:
Home upgrades: Fix up the kitchen, add a new bathroom, or make your yard a great place to hang out.
Pay off debt: Use the HELOC to pay off high-interest credit cards or loans and save on interest.
Make an investment: Start a business, help pay for college, or even buy another property.
Handle emergencies: Use it as a backup for unexpected costs like medical bills or car repairs.
Is Now the Right Time for You?
There’s no one-size-fits-all answer. Ask yourself:
Do I know exactly how I’d use the money?
Can I handle the monthly payments even if rates change?
Do I want access to cash without refinancing or selling my house?
If your answer is yes, then tapping into your home’s value could be a smart move.
Want to know how much equity you’ve got or see what kind of options are available? I can help you figure it out, break down the numbers, and introduce you to lenders you can trust.
Our partners at Christian Community Credit Union can give you a quick and easy HELOC quote.
