Here’s How Much Each Generation Is Tapping Into Home Equity — but Should They Be?

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Heres a quick breakdown of how each generation is using home equity andwhether it makes financial sense for you.

But some generations are tapping into their home equity more aggressively than others.

One reason for the spike is todays interest rate environment.

Instead, theyre using HELOCs to borrow against their home equity without disturbing their existing mortgage.

HELOCs arent right for everyone.

Heres what to consider before taking out a home equity line of credit.

After that, you enter the repayment phase, which can significantly increase your monthly payments.

So ask yourself: Can you comfortably afford those future payments, especially if rates rise?

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Most HELOCs have variable interest rates.

But using it for things like vacations or ongoing living expenses could put you on shaky ground.

Treat it as an investment tool, not a shortcut for lifestyle inflation.

check that youre not borrowing too much against your property.

Just because you’re free to tap into your home equity doesnt mean its always a good idea.

And in the case of a declining housing market, homeowners who over-leverage could find themselves underwater.