Homeowners use second liens to protect mortgage rates below 4%

Borrowers are using home equity lines of credit to lower monthly payments on expensive obligations. This shift is driven by millions of Americans holding mortgage rates below 4%, which makes traditional refinancing a poor financial option. Homeowners are accessing cash by using second liens to maintain their existing first mortgages while tapping into a portion of the $11 trillion in tappable home equity. These funds are used to consolidate higher-interest debt, fund renovations, and finance the purchase of additional property.