Key Takeaways
- Homeowners in 2026 have more options than just refinancing or taking on new debt
- Higher rates and tight monthly budgets are pushing many to reconsider more traditional loan products
- Those options (cash-out refi, HELOCs, home equity loans) still work — but often at a steep monthly cost
- Equity sharing agreements offer upfront cash without monthly payments or interest, in exchange for sharing future home value
- The right choice depends on your financial goals, timeline, and tolerance for tradeoffs
Homeowners are entering 2026 with a complicated reality. Many have significant equity built up in their homes, but few feel comfortable taking on debt or high monthly payments to access it and put that equity to work.
Interest rates remain elevated compared to recent years, the cost of living is still putting pressure on household budgets, and many homeowners are looking for flexibility — not another long-term loan that locks them into payments they may regret later.
The good news is that there are multiple ways to access home equity in 2026. The even better news? There’s an option well-suited to almost every use case, depending on whether your priority is low monthly payments, predictability, speed, or reducing overall cost.
Below is a clear, practical overview of the most common home equity options in 2026 — and when each one makes most sense.
Why Homeowners Are Rethinking Home Equity in 2026
For many households, the first question is whether they should tap into their home equity. But it doesn’t take long to imagine a better way to use your equity than letting it sit stagnant. It could help pay off debt, cover important renovation projects, fund large purchases, or even invest in higher education or a business venture.
The real question is “How can I access my home equity without creating new financial stress?”.
And we get it. Common pain points homeowners are facing in 2026 include:
- High interest rates making traditional borrowing more expensive
- Budget sensitivity and limited tolerance for new monthly payments
- A desire to keep an existing low-rate mortgage intact
- The need for upfront cash to address debt, renovations, or major life expenses
As a result, homeowners are increasingly evaluating alternatives that offer access to equity without immediately increasing monthly obligations. Here are some of the most popular options in 2026:
1. Cash-Out Refinance
A cash-out refinance replaces your existing mortgage with a larger one, allowing you to pull out the difference in cash.
Why homeowners use it in 2026:
It offers a single loan with one monthly payment and can be useful if rates drop meaningfully or if the homeowner already plans to refinance.
Key considerations:
In 2026, many homeowners are reluctant to refinance because it often means giving up a much lower existing mortgage rate and replacing it with a higher one — increasing monthly payments substantially.
2. HELOC (Home Equity Line of Credit)
A HELOC provides a revolving credit line secured by your home, typically with a variable interest rate.
Why homeowners use it in 2026:
It offers maximum flexibility — you borrow only what you need, when you need it.
Key considerations:
That flexibility comes at the cost of interest rates that are usually higher than other home loans (though typically still lower than unsecured personal loans or credit cards). Rates are also variable in many cases, which can make monthly payments unpredictable, and HELOC payments can rise quickly if rates increase. For budget-conscious households, that uncertainty can be stressful.
3. Home Equity Loan
A home equity loan is what most people think of when they hear “second mortgage”. It provides a lump sum with fixed monthly payments over a set term.
Why homeowners use it in 2026:
Predictable payments and a fixed interest rate can feel steady and reassuring.
Key considerations:
Monthly payments can be significant, especially at today’s rates. For homeowners already juggling expenses or debt, adding another fixed obligation can limit flexibility.
4. Equity Sharing Agreement
An equity sharing agreement, like those offered by Unison, allows homeowners to access a portion of their home’s equity upfront without taking on monthly payments or interest. Instead, the homeowner shares a percentage of the home’s future value with the provider when the agreement ends.
Why more homeowners are considering Equity Sharing Agreements in 2026:
For those prioritizing cash-flow relief, an equity sharing agreement can provide immediate funds without adding a single new bill to the monthly budget. That flexibility can be especially valuable during periods of financial transition.
Key considerations:
An ESA doesn’t come without costs. In exchange for the zero-interest, zero-monthly-payment structure, homeowners share in the future appreciation (and in certain cases, the depreciation) of their home’s value. It’s a long-term tradeoff that should be evaluated carefully.
5. Equity Sharing Home Loan
Some homeowners prefer a more traditional loan structure, but still want lower monthly payments than traditional options. For those, Unison also offers an Equity Sharing Home Loan.
Why more homeowners are considering Equity Sharing Home Loans in 2026:
An equity sharing home loan combines a more traditional loan framework with appreciation sharing, which enables Unison to offer substantially lower interest rates and reduced monthly payments compared to standard home equity loans.
Key considerations:
The lower rate and monthly payments are offset by sharing in the future change in your home’s value – not from eliminating cost entirely. It works best for homeowners who want predictability with improved affordability on a monthly basis, not necessarily for those seeking the lowest cost option in the long run.
How to Choose the Best Home Equity Option in 2026
The “best” option depends less on the product and more on your priorities.
Ask yourself:
- Is minimizing monthly payments my top concern right now?
- Do I need short-term breathing room or long-term cost efficiency?
- Do I want to keep my current first mortgage unchanged?
- How comfortable am I with sharing future home value?
For homeowners focused on cash-flow relief, flexibility, and avoiding new monthly obligations, equity sharing agreements are increasingly part of the conversation in 2026. For others, traditional loans may still make sense — especially if predictability or minimizing long-term cost is the priority.
And by partnering with Unison, you team up with a trusted, proven provider that has helped 12,000+ families put their home equity to work. Curious to see how much you could unlock? Start with a quick eligibility check – with no impact on your credit – at unison.com today.
Frequently Asked Questions
What is the best way to access home equity in 2026?
There is no single best option for everyone. Homeowners who want to avoid a monthly payment may prefer an equity sharing agreement, while those prioritizing long-term predictability may choose a more traditional home equity loan.
Can I access home equity without taking on debt?
Yes. An equity sharing agreement is not a loan. The Unison Equity Sharing Agreement is a loan-alternative with no interest and no monthly payments, through which you can unlock up to $500k in cash by sharing a portion of your home's future change in value.
Is equity sharing risky?
Like any financial product, equity sharing involves tradeoffs. The overall cost depends on the future change in your home’s value, and homeowners should be comfortable with the long-term structure before moving forward.
Will accessing home equity affect my mortgage?
Some options, like cash-out refinancing, replace your mortgage. Others, including most equity sharing products and HELOCs, typically leave your first mortgage intact.
Disclaimer: This sponsored content is for informational purposes only and is not financial, legal, or tax advice. Unison’s Equity Sharing Agreement (ESA), offered through Unison Agreement Corp., provides cash upfront with no monthly payments or interest charges. In exchange, you share a percentage of your home’s future appreciation (or a limited portion of any depreciation) when the agreement ends (upon sale, refinance, buyout after 5 years, 30-year term, or death/default). If your home depreciates, Unison typically shares in a portion of the loss, subject to program limits—you may still owe the full advance amount. A lien is placed on your property, which may limit future refinancing options. There may be tax implications (e.g., potential recognition of income on forgiveness of advance if the home depreciates). No guarantees are made regarding home value changes or outcomes. For complete terms, eligibility, and details, visit unison.com. For traditional lending products, see Unison Mortgage Corp., NMLS #2574289. Always consult your own financial, legal, and tax professionals before proceeding.