Want to borrow home equity without refinancing? 3 options to consider this May Homeowners are sitting on record levels of equity, but rising interest rates make refinancing costly. Three viable alternatives to a cash-out refinance for accessing home equity are home equity loans, HELOCs, and reverse mortgages, each offering unique benefits for different financial situations.

• Record home equity levels present an opportunity for homeowners to borrow funds.
• Elevated interest rates are expected to persist, making refinancing a less attractive option.
• Home equity loans offer a fixed rate and competitive average interest rate of 6.96%, allowing homeowners to keep their existing mortgage.
• HELOCs provide a revolving line of credit with a slightly higher average rate of 7.11% and may offer interest-only payments during the draw period.
• Reverse mortgages are available for homeowners aged 62 and older, requiring no monthly repayments and only needing to be repaid upon sale or death of the homeowner.
• Each option allows homeowners to leverage equity without refinancing their existing mortgage and potentially losing a favorable rate.