Last updated: May 21, 2026

Americans Are Sitting on $11 Trillion in Home Equity — Here's How to Access It

American homeowners are collectively sitting on a staggering amount of wealth locked inside their properties. According to ICE Mortgage Monitor data, tappable home equity in the U.S. has reached $11 trillion — a figure that reflects years of rising property values and steady mortgage paydowns.

For many homeowners, that equity represents a low-cost borrowing option that’s cheaper than credit cards or personal loans. But accessing it requires choosing the right product. The two main options — a home equity line of credit (HELOC) and a home equity loan — serve different needs, and understanding the difference can save you thousands.

HELOC vs. Home Equity Loan: What’s the Difference?

A HELOC works like a credit card secured by your home. You get approved for a credit line — the average limit is nearly $150,000 — and draw from it as needed during a set period, typically 5 to 10 years. You only pay interest on what you borrow, and the rate is usually variable. As of March 2026, the average HELOC rate is 7.17%, according to Bankrate.

A home equity loan gives you a lump sum upfront with a fixed interest rate and fixed monthly payments. Current averages run between 7.85% and 7.99% depending on the term length, per Bankrate data. A 5-year term averages 7.85%, a 10-year term comes in at 7.99%, and a 15-year term averages 7.97%.

When a HELOC Makes More Sense

A home equity line of credit tends to work best when you don’t need all the money at once. Home renovation projects that happen in phases, ongoing tuition payments, or having a financial safety net for irregular expenses are all solid use cases. The variable rate means your payment could change, but with rates currently at a three-year low and expected to hold steady through the first half of 2026, the risk is manageable for many borrowers.

The flexibility is the key advantage. You can draw $20,000 now, another $15,000 in six months, and only pay interest on the amount you’ve actually used.

When a Home Equity Loan Is the Better Choice

If you know exactly how much you need and want payment certainty, a fixed-rate home equity loan is the more straightforward option. Debt consolidation is a common use — replacing high-interest credit card balances with a single fixed payment at under 8% can meaningfully reduce your monthly obligations. Major one-time expenses like a full kitchen remodel or medical bills also fit this structure well.

The tradeoff is less flexibility. You receive the full amount at closing and begin repaying immediately, regardless of whether you use all the funds right away.

How to Get Started

Qualifying for either product typically requires at least 15% to 20% equity in your home, a credit score in the mid-600s or higher, and a manageable debt-to-income ratio. The application process is similar to a mortgage refinance, including a home appraisal in many cases.

Rates and terms vary considerably between lenders — comparing multiple providers is one of the most effective ways to ensure you’re getting a competitive deal on your home equity line of credit or loan.

With $11 trillion in equity available nationwide and borrowing costs at their lowest point in over three years, homeowners who’ve been considering tapping their equity have a favorable environment to do so.

Reviewed by Priya Iyer, CFA®. Priya Iyer, CFA®, is a chartered financial analyst with 14 years of experience in self-directed retirement vehicles, alternative assets, and residential mortgage products. Last reviewed May 2026.