U.S. Bank leader offers advice on what record equity levels mean for homeowners

Home equity strategy head Wendy Morrell helps homeowners understand the power of their home equity

As home equity levels in the U.S. have reached record highs, many homeowners are finding they may have access to more options to access their home equity than ever before.

We sat down with Wendy Morrell, who oversees home equity strategy at U.S. Bank as head of relationship retail, to help homeowners understand what this record home equity could mean for them.

What does the high level of home equity value mean for the everyday homeowner?

Home equity is the difference between your home’s market value and the amount you owe on your mortgage. As home values have risen at near-record rates over the last five years, that has created this surge in home equity. In fact, in 2025, the average homeowner is sitting on more than $200,000 in home equity, according to a recent report from International Exchange Mortgage.  

If you’ve owned your home for several years, it is likely that the value of your home has increased as the balance of your home loan has decreased, which creates equity. The U.S. Bank Home Equity Rate and Payment Calculator can help you understand what home equity lending options may be available to you based on the balance of your mortgage, property value, credit score and borrowing amount. 

How are homeowners putting their home equity to work?

More than 40% of our clients who have opened a home equity loan or line of credit are using it for home improvements. We believe some homeowners are choosing to upgrade their home, instead of moving into a new home that may better meet their needs, due to current homebuying conditions, including elevated mortgage interest rates and lack of inventory.  

Home equity products can also be an effective way to consolidate debt into a lower, fixed interest rate with a set repayment plan. Credit card debt, medical debt and student loans are common types of debt clients may look to consolidate using a home equity product. 

How can you access the equity in your home?

You can apply for a home equity loan or home equity line of credit (HELOC). A home equity loan allows you to take out a lump sum and pay it back over a set period of time at a fixed interest rate, which can be ideal for a large one-time expense such a home improvement project or to consolidate debt.

A HELOC, on the other hand, lets you borrow money as you need it and in the amount you need up to a pre-determined limit. This can be ideal for staggered expenses over a period of time, such as college tuition or a remodeling project that will be done in stages. 

Is your mortgage lender the only lender that can provide a home equity product?

You can apply for home equity products with any lender that offers them, so you are not limited to the lender who holds your mortgage. When choosing a home equity lender, it’s important to consider what type of service and digital experience you’ll want. At U.S. Bank, home equity clients can get assistance with and manage their loan via the U.S. Bank Mobile App, in-person at any of our 2,200 branches or through our 24-hr banking line.

How is borrowing against your home equity different from other loans?

When you borrow against your home equity, it is considered a secured loan because the home is the collateral. Other types of secured loans include mortgage and auto loans, while unsecured loan types include credit cards and personal loans. Because there is collateral associated with secured loans, the interest rate can be much lower than that of an unsecured loan.

Is now a good time to borrow against your home equity?

We are seeing many clients benefit from accessing their home equity, but the right decision depends on your individual financial situation and goals. Talking to a knowledgeable mortgage loan originator can help you assess your financial picture and determine the best lending option that meets your needs. 

To learn more about accessing your home equity, find your local mortgage loan originator on usbank.com or call 844-569-0126.