Overview
- Recent coverage on Monday and Tuesday, Aug. 24–25, 2026, highlighted that homeowners hold roughly $18 trillion in equity and that deciding between a HELOC, home equity loan, or cash‑out refinance hinges on whether your current mortgage rate is lower than offers today.
- A HELOC is a home‑secured revolving credit line with a draw period (commonly about 10 years) followed by a repayment period, and its interest rate is usually variable so monthly costs can shift over time.
- Rolling credit card balances into a HELOC can cut monthly interest because HELOC rates are typically under 8% versus average credit card APRs near 21%, but doing so replaces unsecured debt with secured debt that risks foreclosure if you miss payments.
- Experts and data stress rate shopping: Bankrate research shows most borrowers don’t secure the best rate and that failing to compare lenders can cost homeowners thousands of dollars a year in extra interest.
- Alternatives such as fixed‑rate personal loans, 0% balance transfers, debt management plans, or a cash‑out refinance may be better depending on your credit score, debt‑to‑income ratio, remaining equity, and whether you want to keep a locked low mortgage rate.