Around $11 trillion. 

That's by homeowners right now, according to a report released earlier this month by the . With nearly $17 trillion in total equity currently, this could be a viable funding source for homeowners in need of extra financing in today's challenging economic climate. And with a , they can do so with a product that's and even less expensive than personal loans or credit cards.

At the same time, HELOCs, like their counterparts, utilize your home as collateral. Failure to repay all that's been borrowed can result in . So it's critical that costs here are managed carefully and that homeowners go into the process informed and prepared. That begins with some understanding of the current HELOC space and the improvement in costs in recent years. Below, we'll detail what borrowers need to know (and what they should do) to take advantage of this timely opportunity.

.

"The cost to borrow against equity continues to improve," the March ICE report states.

"HELOC rates have fallen from roughly 10% two years ago to around 7% at the end of 2025, cutting the monthly cost to tap $50,000 in equity from $412 to $296, a roughly 30% reduction," the report notes. "Two additional Fed cuts projected for 2026 could push that monthly cost down roughly 10% more, making equity extraction increasingly affordable."

This is particularly important for both current HELOC borrowers and potential ones, as the product has a that based on market conditions. So, if another Fed rate cut is issued or market conditions change, HELOC rates may decline again. And borrowers will benefit from that reduction independently, without having to or pay for as they would have to do with alternative products like home equity loans. 

At the same time, this variability could also be problematic if rates rise, so borrowers should crunch their repayment costs against a series of realistic rate scenarios to best determine long-term affordability.

.

If the changes in the HELOC interest rate space have encouraged you to take action, consider starting with these next steps:

With HELOC costs down by around 30% over the past two years, this could be the smart way to borrow money right now. And with a variable rate well-positioned to decline alongside additional rate cuts issued later in the year, it could quickly become even more affordable for homeowners. That said, with the home functioning as collateral, you'll want to take a strategic and informed approach to avoid foreclosure risks. Consider speaking with a lender, then, who can answer your questions and help you build a tailored (and secure) borrowing plan.