Homeowners are increasingly using cash-out refinances and HELOCs to access record levels of home equity, with rate declines making the math more attractive than in recent years.
Popular uses include home improvements, debt consolidation, and education funding. Lenders caution borrowers to avoid tapping equity for discretionary spending that won't build long-term value.
For homeowners with low first mortgage rates, a HELOC or home equity loan often makes more sense than a full refinance, preserving the existing favorable rate.
