Borrowing home equity should always be done carefully but especially in the unique economic climate of 2026. Why you should avoid refinancing if borrowing home equity nowWith home equity levels hitting a record high in 2025, borrowing from this source could be advantageous in 2026. Be careful, then, if you've initially decided on this option and don't sign any application without first comparing it to your other home equity borrowing options now. And, right now, home equity loans have some of the lowest interest rates in the entire borrowing space. The bottom lineWith the average homeowner sitting on a six-figure amount of equity now, borrowing from it is naturally appealing.