HOUSING AND INTEREST RATES

Alexander Spatari | Moment | Getty Images Historically, the biggest advantage of having home equity was amassing more money to put into a future home. "That's historically how people have been able to move up in the housing ladder," she said. But homeowners carrying a low fixed-rate mortgage may feel  locked into their current home  due to the relatively high rates that would accompany a new loan for a new house. Moving and downsizing remains an option but "that math doesn't really work in their favor," Baker said. "Not only has their home gone up in value, but so has everything else in the general vicinity," he added. "If you're trying to find something new, you can't do a whole lot with it." Cash-out refinance A cash-out refinance is another option, though should be considered more of a last resort, Elliott said. "I don't know anyone right now who's recommending a cash-out refi," she said. A cash-out refi repla...

Grace Cary | Moment | Getty Images A home equity line of credit, or HELOC, is typically the most common way to tap housing wealth, Hepp said. A HELOC lets homeowners borrow against their home equity, generally for a set term. Borrowers pay interest on the outstanding balance. The average HELOC has a 9.2% interest rate, according to Bankrate data as of June 6. Rates are variable, meaning they can change unlike with fixed-rate debt. (Homeowners can also consider a  home equity loan , which generally carries fixed rates.) For comparison, rates on a 30-year fixed-rate mortgage  are around 7% , according to Freddie Mac. More from Personal Finance: Buying a house of 'Home Alone' or John Lennon fame? Expect a premium A 20% down payment is 'definitely not required' to buy a house What to expect from the housing market this year While HELOC rates are high compared with the typical mortgage, they are  much lower  than credit card rates, Elliott said. Credit card holders with a...