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If homeowners thought a recent surge in levels had plateaued, a new report released on Monday showed that to be far from the case. Tappable home equity levels hit yet another new high in the second quarter of 2025, according to the . Borrowers entered the third quarter of the year "with a record $17.8 trillion in total equity, including $11.6 trillion in tappable equity that can be accessed while maintaining a 20% cushion," the report stated. "Roughly 48 million mortgage holders had tappable equity, with the average homeowner holding $213,000 in accessible value."

If you're one of the millions of homeowners with tappable equity – and also one of the millions of Americans coping with high borrowing costs and inflation-related expenses – you may be wondering how you can borrow some of this money right now. Fortunately, there are multiple ways to do so, some of which offer the lowest interest rates available right now. Below, we'll break down three cost-effective and reliable ways to borrow home equity now that levels have hit a new high.

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There are multiple ways in which homeowners can borrow their home equity, three of which may be particularly advantageous in today's market:

A allows homeowners to use their home equity via a lump sum of money, which may be attractive now with home equity amounts so high. are under 8.50% right now, making them materially cheaper than credit cards and personal loans. And, if the funds are used for select projects and home renovations, owners may be eligible to from their taxes for the years in which the funds were used. Just avoiding overborrowing now, too, as your home is collateral in these exchanges, and you could risk if you're unable to make payments as agreed to.

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A operates as a mix between a home equity loan and a credit card. Instead of the lump sum of money the loan provides, the HELOC functions as a revolving line of credit in which you'll only be responsible for payments on the amount utilized, not the full line of credit you've been approved for. 

Currently, HELOC rates are just around 8%, making them one of the , not just in the home equity climate but overall.  that home equity loans do, but  that are subject to change based on market conditions, although that could be an advantage now, ahead of predicted rate cuts later this year.

Generally only available for , n comes with a distinct advantage in that repayments won't need to be made monthly in the same way they would with a home equity loan or HELOC. Instead, homeowners will only need to pay back the equity they borrowed when they sell the home or in the event of the death of the homeowner. So, for senior homeowners looking to exploit today's elevated home equity environment but want to avoid adding another bill into the mix, this could be the way to do so.

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With home equity levels at another new high, homeowners in need of extra financing or who want to build an emergency funding source may want to familiarize themselves with the top ways to borrow equity now. Home equity loans, HELOCs and reverse mortgages all offer cost-effective and reliable ways to borrow. But with the funding source being your most prized financial asset, and the risk of potentially losing it if you're unable to make payments, it's important to explore each option's pros and cons carefully before getting formally started with an application.