If you’re a homeowner considering borrowing from your accumulated equity now, you’re not the only one. There are hundreds of thousands of homeowners who have already done so so far in 2026, according to the September 2026 Intercontinental Exchange (ICE) Mortgage Monitor Report. And there are likely to be many more before the year is out.
“Nearly 548,000 homeowners tapped a combined $54 billion in equity in the second quarter,” the report noted, “marking the most borrowers to tap equity and the second-largest withdrawal volume in a quarter since 2022, trailing only the second quarter of 2025. Second liens continued to drive the majority of equity extraction, with homeowners withdrawing $29.5 billion through home equity loans and lines of credit in the second quarter, down a modest 3% from the cyclical peak reached in the second quarter of 2025.”
Overall, the report noted, “mortgage holders withdrew equity equal to about 0.47% of the $11.4 trillion in tappable equity available at the start of the quarter, the highest extraction rate since 2022, though only modestly above year-ago levels.”
While borrowing from your home equity, whether via a home equity loan or a home equity line of credit (HELOC), isn’t totally risk-free, it can still be a smart and preferable way to gain access to extra financing this fall and in the months and years ahead. With home equity borrowing on the rise again, below we’ll detail three reasons why it could make sense for homeowners now.
Start by seeing how much home equity you’d be eligible to borrow here.
Why home equity borrowing makes sense now
Not sure if it makes sense to apply for a home equity loan or HELOC now? Here are three reasons why it could be one of the better ways to borrow in today’s economy:
The amount you have to work with is elevated
Trillions of dollars. That’s how much equity there is to leverage currently. That comes after home equity levels hit a record high in 2025, meaning that whether you need access to $20,000 or $200,000, your home likely has it readily available now.
This much funding isn’t nearly as accessible if you choose to borrow it with a personal loan or a credit card. And, even if you could qualify for a $200,000 personal loan or a credit card with a line of credit that high, the rate you’ll pay to secure it will be considerably higher than just the average rates you can otherwise secure now with a home equity loan or HELOC.
See how low your current home equity loan rate offers are now.
You have both fixed and variable rate options to choose from
Want to borrow equity with a fixed-rate product in which the rate won’t change, which could be advantageous if rates soon rise again? Then a fixed-rate home equity loan is available and worth considering. If you want to use a product that has a variable rate that will be better positioned to exploit rate cuts in the future, however, the HELOC could be preferable.
No matter which you prefer, however, you’ll be able to get it. And, if you change your mind in the future, many lenders will allow you to refinance a home equity loan into a HELOC or vice versa, though that will come with closing costs that you’ll need to account for at the time.
Interest rates are considerably lower than the alternatives
The average personal loan interest rate is over 12% while the average credit card interest rate is over 22% this September. And those are averages, meaning that borrowers without good credit scores could expect to qualify for even higher interest rates. Interest rates on home equity loans and HELOCs, however, are both in the low 8% range now, providing an affordable alternative for homeowners who would otherwise get saddled with exorbitant rates and costs.
That said, the affordable HELOC rate and payment you’re eligible for now may not stay that way if the interest rate climate heats up. Consider your ability, then, to manage a changing rate and payment each month and, if you’re not sure, look to the fixed-rate home equity loan instead.
The bottom line
Home equity borrowing has made a lot of financial sense for homeowners in the unique economic climate of recent years. But it can be an especially important borrowing source now. With levels to borrow from high, both fixed and variable rate options to choose from based on your interpretation of market conditions and interest rates (and costs) considerably lower than the alternatives, a home equity loan or HELOC may be worth applying for this month. Just be sure to calculate your prospective costs as carefully as you can in advance as you’ll want to avoid any risk of foreclosure.
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