Record Home Equity in 2025: What Virginia Beach Homeowners Need to Know About HELOCs

by Megan Luker, REALTOR® | VA Beach | Real Broker LLC

U.S. homeowners hold $11.5 trillion in tappable equity, with HELOC rates falling. See what this means for Virginia Beach homeowners and smart borrowing strategies.

Virginia Beach homeowners have more tappable equity than ever—$11.5 trillion nationwide—and borrowing against it just got cheaper. With HELOC rates falling and the Fed signaling more cuts ahead, this may be one of the most affordable times in years to put your home’s value to work.

But does it make sense for you to tap into your equity now? Let’s break down the data, the savings, and the best ways to leverage this opportunity.

Record-Breaking Equity Levels

According to the June 2025 Mortgage Monitor by ICE Mortgage Technology:

U.S. homeowners hold $17.6 trillion in total home equity
$11.5 trillion is “tappable” (borrowable while maintaining 20% equity)
The average homeowner has $212,000 in tappable equity
48 million mortgage holders have access to this equity—an all-time high

Despite this record wealth, most homeowners haven’t accessed it. In Q1 2025, only 0.41% of tappable equity was withdrawn, far below historical averages.

Borrowing Just Got Cheaper (By Over $100/Month)

The cost to borrow is also improving:

HELOC rates fell by 2.5% in recent months, now averaging below 7.5%
In early 2024, borrowing $50,000 via HELOC = $412/month
In Q2 2025, that same loan = $311/month
That’s $100+ in monthly savings

If the Fed follows through with expected cuts later this year, rates could dip into the mid-6% range by 2026, lowering payments further.

Why More Homeowners Are Considering HELOCs

With equity levels high and rates easing, 1 in 4 homeowners say they’re considering a HELOC or home equity loan within the next year (ICE Borrower Insights Survey). Here’s why:

🏡 Renovations & Upgrades: Finance a kitchen, bathroom, or backyard project that boosts value and livability.
💳 Debt Consolidation: Replace high-interest credit cards with a lower-rate HELOC.
📈 Strategic Investments: Fund a business, second property, or education without dipping into retirement savings.
⚡ Emergency Fund: Access flexible cash when life’s unexpected expenses hit.

Should You Tap Into Your Equity Now or Wait?

The answer depends on your personal goals. Ask yourself:

Do I have a clear plan for the funds (remodeling, debt payoff, investing)?
Can I comfortably afford the monthly payment—even if rates shift?
Do I want to access cash without selling my home or refinancing my low-rate mortgage?

If the answer is yes, tapping into your equity could be a smart move. If not, it may make sense to wait and simply track your equity growth.

FAQs

What’s the difference between a HELOC and a home equity loan?
A HELOC works like a credit card—you borrow as needed, up to a limit. A home equity loan is a lump sum with fixed payments. Both use your home’s equity as collateral.
Are HELOC interest payments tax-deductible?
In some cases, yes—if funds are used for home improvements. Always confirm with your tax advisor.
How much equity do I need to qualify?
Most lenders require you to keep at least 20% equity in your home after borrowing.

📲 Curious about how much equity you have—or whether a HELOC is right for you? Let’s run the numbers together. Call me at 757-703-1590 or DM me on Instagram @virginiabeachwithmegan. As a local Virginia Beach real estate expert, I can connect you with trusted lenders and help you make the smartest move for your future.

✍️ Written by Megan Luker, REALTOR® | Virginia Beach Military Relocation Expert, Navy Wife & Mom
Licensed REALTOR® in the Commonwealth of VA at ΓEA⅃ Broker, LLC
📱 757-703-1590 (direct) | ☎️ 855-450-0442 (office)
📍 1765 Greensboro Station Place, 900 McLean, VA 22102
📧 megan@lukerativegroup.com