You May Be Sitting on $200K in Home Equity. Should You Use It?

 How to Know If It’s Time to Tap Into Your Home Equity in Fargo-Moorhead

Right now, homeowners in Fargo, ND and Moorhead, MN — just like across the country — are sitting on a record amount of tappable home equity. Thanks to rising home values and falling HELOC (home equity line of credit) rates, tapping into that equity has become more affordable than it’s been in years.

But is now the right time for you to make a move?

Let’s take a closer look at the numbers and what they could mean for your next financial decision.

 Record-Breaking Equity Levels

According to the June 2025 ICE Mortgage Monitor Report:

U.S. homeowners have $17.6 trillion in total equity

$11.5 trillion of that is tappable — meaning it can be borrowed while retaining at least 20% equity in the home

The average homeowner has $212,000 in tappable equity

48 million mortgage holders — the highest number ever — have access to this equity

Yet, most homeowners haven’t acted. In Q1 2025, only 0.41% of tappable equity was used — well below historical norms.

 Borrowing Costs Just Dropped — Big Time

Here’s the good news for homeowners: borrowing against that equity is now cheaper.

HELOC rates fell by 2.5 percentage points recently

Average rate: now under 7.5%

That means a $50,000 HELOC that cost $412/month in early 2024 now costs just $311/month

That’s over $100 in monthly savings — and rates could dip even lower by 2026 if the Fed continues with expected cuts.

 Why More Fargo-Moorhead Homeowners Are Exploring HELOCs

More homeowners are realizing they can use their home’s equity without refinancing their low-rate mortgage or selling their home.

According to a recent survey, 1 in 4 homeowners is considering a HELOC or home equity loan within the next year.

Common reasons include:

 Renovations – fund kitchen or bathroom upgrades, finish your basement, or improve curb appeal

Debt consolidation – roll high-interest credit card debt into one lower-rate payment

 Strategic investments – fund a business, purchase a second property, or support a child’s college tuition

Emergency backup – secure a flexible line of credit you can draw from when life surprises you

 Should You Tap Into Your Equity Now?

Here’s a simple checklist to help you decide:

Do I have a clear plan for how I’ll use the funds?

Can I comfortably manage the monthly payments, even if rates change?

Do I want to access cash without refinancing my mortgage or selling my home?

If you answered “yes” to those questions, now could be a smart time to move forward.

 What This Means for Buyers: Should You Wait or Renovate?

If you’re a buyer in today’s Fargo-Moorhead real estate market, you might be feeling frustrated. Inventory remains tight, competition is still strong for well-priced homes, and you may not be finding the layout, features, or location you want — within your budget.

That’s where home equity insights can also help guide your decision.

Maybe now isn’t the time to buy — maybe it’s time to improve.

If you already own a home, even if it’s not your “forever home,” tapping into your home equity to fund smart renovations might be the better move:

Want an open concept kitchen? Remodel instead of relocating.

Need a home office or nursery? Finish the basement or convert an unused space.

Craving more style and space? Update what you have and boost your home’s value at the same time.

With HELOC rates falling and equity at an all-time high, improving your current space can be a smart financial and lifestyle decision — without the stress of jumping into a competitive buying market.

And if you’re unsure about selling vs. staying put, I’m happy to help you run the numbers, weigh the options, and explore both paths.

 Let’s Explore Your Options Together

If you’re in the Fargo-Moorhead area and wondering how much equity you might have — or if a HELOC could be right for your situation — I’m happy to help.

Let’s sit down, look at your numbers, and I can connect you with trusted local lenders who understand our market.

You may be sitting on a financial opportunity you didn’t realize was right under your roof.