Elevated interest rates aren't likely to decline anytime soon. That was one of the big takeaways last week after the Federal Reserve elected to keep its benchmark interest rate frozen for the third time this year. And with no Fed meeting on the calendar again until June, and the likelihood of a rate cut then incredibly small now, American borrowers will be dealing with higher borrowing costs for the foreseeable future. Making ends meet in this climate, then, becomes critically important.  

Fortunately, there is a viable funding source to consider this May: home equity. With average home equity levels in the country hitting a record high in 2025, there's plenty of money to borrow from now. At the same time, a cash-out refinance may not exactly be the smart way to access it. Since this will require taking out a new loan to pay off the existing one (homeowners keep the difference as cash), a mortgage rate exchange will inevitably occur. And that will leave many homeowners in a worse position than they already are, thanks to today's mediocre average mortgage rates.

But there are ways in which these homeowners can still leverage their home equity without refinancing, one of which won't even require monthly repayments to be made. Below, we'll break down three of these options to consider this May.

Start by seeing how much home equity you'd be eligible to borrow here.

How to borrow home equity without refinancing this May

Want to borrow $50,000 worth of home equity or more this month, but don't want to have to give up your low mortgage rate to do so? Here are three other options worth considering:

A home equity loan

With an average interest rate of 6.96% currently, a home equity loan isn't just your cheapest way to borrow equity this May; it's one of the most affordable ways to borrow money overall. And it will allow you to keep your existing mortgage rate intact. In fact, you don't even have to use your current mortgage lender when borrowing with a home equity loan, nor should you if you can find better rates and terms with a competitor. 

The product also has a fixed rate that won't change unless refinanced, allowing you to budget with precision, which is especially important considering that your home will be serving as collateral in this exchange. If you use it for select home repair projects and renovations, you may even be able to deduct the interest paid from your tax bill for the years in which it was used.

Get started with a home equity loan online today.

A HELOC

With an average rate of 7.11% right now, a home equity line of credit (HELOC) comes with marginally higher monthly payments than a home equity loan does currently. But it also works differently, functioning as a revolving line of credit versus the lump sum the home equity loan provides upfront. That functionality difference could be worthwhile for homeowners unsure of how much money they actually need to borrow. This product also won't impact your existing mortgage rate, but it will come with the same tax features the home equity loan does. 

Many lenders will also allow for interest-only payments on the HELOC during the initial draw period, giving borrowers more financial breathing room to start. That said, a HELOC has a variable rate that will adapt to market conditions each month, so some variability will need to be priced into any long-term cost projections.

A reverse mortgage

Only available for homeowners age 62 and older, this could be the ideal way for seniors to leverage their home equity while keeping their mortgage terms intact – and without having to deal with the stress of making a monthly payment each month. Instead, the funds from a reverse mortgage will only need to be repaid when the home is sold or when the homeowner dies. 

It will, however, reduce the home's value for beneficiaries, so that will need to be accounted for. But if you want to borrow equity, can't afford one of today's higher mortgage rates and don't want to be saddled with repayments each month, this could be the ideal product for you to start exploring.

Learn more about your reverse mortgage options here.

The bottom line

Homeowners who want to borrow equity but can't afford to exchange their current mortgage rate to do so should understand that they have viable, affordable alternatives to consider. Home equity loans, HELOCs and reverse mortgages are three that are worthy of serious exploration this May. Consider speaking with home equity lenders or reverse mortgage companies directly, as they can help you build a tailored strategy that both meets your needs and fits your budget.