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In an environment where market uncertainty is pronounced and interest rate cuts look to be on an indefinite pause, many Americans may be looking for affordable ways to borrow money right now. And with personal loan interest rates over 10% and credit card rates over 20%, neither represents a viable way to make ends meet. Homeowners, however, may have a viable source right under their own roof via their home equity. And, according to a report released this month, there’s plenty to borrow from.
“Homeowners continue to hold nearly $17 trillion in total equity, with approximately $11 trillion considered tappable,” the March 2026 Mortgage Monitor report from the Intercontinental Exchange (ICE) recently revealed. While those figures remained steady year over year, they still represent a sizable amount of money that homeowners can leverage right now, while still maintaining a cushion of equity for the future. “Tappable equity,” according to the report, “is equity that could be withdrawn while still maintaining an 80% or lower loan-to-value ratio.”
Against this backdrop, then, and with a recent unemployment report and inflation reading underlining the need for additional funds right now, your home could be a funding source to consider. Still, it will function as collateral in this exchange and foreclosure is an inherent risk if not managed properly, so borrowers will need to carefully consider the ways to borrow equity before getting started. Below, we’ll detail two of the major ones worth looking into now.
See how much home equity you’d be eligible to borrow here.
How to borrow home equity right now
While you may be able to leverage your home equity with a cash-out refinancethat will require the exchange of your current mortgage rate (which is presumably low) for one of today’s average ones (which may be higher), so that’s typically not a viable recourse now.
Reverse mortgagesmeanwhile, may be a good fit for some homeowners, but they’re only available for those age 62 and older, limiting their usage. There are two other types, however, that have low interest rates now. Both options will allow you to maintain your existing mortgage rate, without any age restrictions. Here’s what to consider:
A home equity line of credit (HELOC)
HELOC interest rates have dropped considerably over the past 18 months. At an average rate of just 7.18% right now, a HELOC isn’t only the most affordable home equity borrowing option right now, it’s one of the least expensive ways to borrow money overall. And with a variable rate that can change monthly for borrowers, it may become even cheaper if interest rate cuts are issued again later in 2026.
That said, that variability can work in both ways, so prospective borrowers will need to account for some rate changes to best determine long-term affordability. Interest paid on HELOC is also tax-deductible if used for eligible home projects. That can reduce concerns over the interest if borrowers go into the process knowing that it may result in a lower tax bill. And many lenders will require interest-only payments during the HELOC’s initial draw periodmaking starting payments even lower than they would be with alternative loan products.
Get started with a HELOC online now.
A home equity loan
A home equity loan functions similarly to a HELOC but not identically. Unlike a HELOC, in which funds are disbursed as a revolving line of credit, the home equity loan provides the funds in one lump sum, and repayments on the full loan are immediately required. With an average rate of 7.84% now, a home equity loan could be a smart choice for borrowers concerned about market instability, as the rate is fixed and will remain the same unless refinanced.
Unlike a HELOC, however, the loan won’t automatically benefit from rate cuts in the future, though that exchange could be worth it for the precise budgeting and reliability the loan provides. Home equity loans, too, come with the same tax deduction features HELOCs do for the years in which the funds were used.
The bottom line
With around $11 trillion in home equity to borrow from right now, homeowners in need of extra financing may want to take a second look at their home equity options. Both HELOCs and home equity loans are worth evaluating, thanks to their affordable interest rates, flexible borrowing functionality and potential tax deductions. But with your home as collateral, borrowers should be careful in their approach to avoid any potential foreclosure risks. Consider speaking with a lender directly who can help answer your questions and better help you build a tailored borrowing plan now.