Home Equity Loans and HELOCs Gain Popularity Amid High Mortgage Rates

As mortgage rates remain elevated, homeowners are leveraging home equity options for renovations, debt consolidation, and financial flexibility.

Homeowners gained $1.3 trillion in equity over the past year, with total equity surpassing $17.6 trillion, according to CoreLogic.
HELOCs and home equity loans offer lower interest rates than credit cards and personal loans, making them attractive borrowing options.
HELOCs provide flexible credit lines for projects like home renovations, which may also qualify for tax-deductible interest through 2025 if used to improve the home.
Home equity loans allow borrowers to access a lump sum for large expenses, but both options use the home as collateral, posing foreclosure risks if payments are missed.
Experts caution against over-leveraging home equity and recommend strategic use, such as funding value-boosting improvements or consolidating high-interest debt responsibly.