Right now, U.S. homeowners are holding onto a record $11.5 trillion in tappable equity—the kind you can borrow without selling your home or sacrificing your 20% equity cushion.
And here’s the kicker: it just got cheaper to access that cash.
Rates on home equity lines of credit (HELOCs) have dropped, making it one of the best times in years to put your home’s value to work. But the big question remains: is now the right time to borrow, or should you sit tight?
Let’s break it down.
The Equity Boom
According to the latest Mortgage Monitor from ICE Mortgage Technology:
- Total U.S. home equity sits at $17.6 trillion.
- $11.5 trillion of that is “tappable”—borrowable while keeping 20% equity untouched.
- The average homeowner has about $212,000 in tappable equity.
- Roughly 48 million mortgage holders have access to this—an all-time high.
Despite sitting on all this value, most homeowners haven’t touched it. In the first quarter of 2025, only 0.41% of available tappable equity was actually withdrawn, far below historical norms.
Borrowing Costs Are Falling
While equity is up, borrowing costs are sliding. HELOC rates have dropped by 2.5 percentage points in the past few months, sinking below 7.5% in March.
What does that mean in real dollars?
- Early 2024: A $50,000 HELOC had an average monthly payment of $412.
- Now (Q2 2025): That same HELOC costs around $311 a month.
That’s a savings of over $100 every month. And if the Fed follows through with expected rate cuts later this year, HELOC rates could dip into the mid-6% range by 2026, pushing payments even lower.
Why More Homeowners Are Eyeing HELOCs
Low rates and record equity are getting more homeowners off the sidelines. ICE’s Borrower Insights Survey shows 1 in 4 homeowners are considering a HELOC or home equity loan within the next year.
Why? Here’s what’s driving the interest:
- Home upgrades: Use equity to finance renovations like a kitchen remodel or backyard makeover—investments that boost your home’s value and improve your day-to-day life.
- Debt consolidation: Roll high-interest credit cards or personal loans into a lower-rate HELOC, cutting your interest costs and simplifying your finances.
- Strategic investments: Tap into equity to fund a business venture, buy a second property, or cover major education expenses—without touching retirement savings.
- Emergency cushion: A HELOC can serve as a flexible backup, letting you borrow when needed without refinancing your low-rate mortgage.
Should You Tap In Now or Wait?
It comes down to your situation. Ask yourself:
- Do I have a clear plan for how I’ll use the funds?
- Can I comfortably manage the monthly payments, even if rates change?
- Do I want to unlock cash without selling my home or refinancing into a higher mortgage rate?
If you’re answering “yes,” this could be the right time to leverage your home’s equity.
Curious about how much equity you have or whether a HELOC makes sense for you? I can help you run the numbers, explore your options, and connect with trusted lenders.
Curious about tapping into your home’s equity? Let’s talk! As your trusted realtor, I can help you explore your options and connect you with top local lenders.
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