Home equity borrowing is rising again. Here's why it makes sense for homeowners now.
Summary
More homeowners in 2026 are borrowing money using the value they have built in their homes, a practice called home equity borrowing. Many are doing this because home equity loans and lines of credit often have lower interest rates and offer more money compared to personal loans or credit cards.Key Facts
- Nearly 548,000 homeowners borrowed a total of $54 billion from their home equity in the second quarter of 2026.
- This is the highest number of home equity borrowers and the second-largest borrowing amount since 2022.
- Home equity loans and home equity lines of credit (HELOCs) made up about $29.5 billion of this borrowing.
- The available home equity to borrow was about $11.4 trillion at the start of the quarter, the highest in recent years.
- Homeowners can choose fixed-rate loans that keep the interest rate the same or variable-rate loans that may go up or down over time.
- Home equity loan rates are currently in the low 8% range, which is lower than personal loans (over 12%) and credit cards (over 22%) on average.
- Refinancing between loan types (fixed or variable) is possible but may include extra fees.
- Borrowing from home equity is seen as a cheaper way to get money compared to other types of borrowing.
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