No one’s talking about a dangerous new US housing trend. Why home equity agreements could trigger disaster for millions

American families collectively have a jaw-dropping $35.8 trillion in home equity as of mid-2025, according to the Federal Reserve (1). Unfortunately, much of that immense wealth is relatively illiquid and difficult to access. Perhaps the most popular way to tap into your home equity — besides selling the house — is a home equity line of credit (HELOC). However, there’s been a surge in demand for a new financial instrument that promises to give you access to your home equity without “interest rates” or “mo ...