Homeowners should carefully calculate their potential monthly costs before borrowing with a home equity loan. thianchai sitthikongsak/Getty Images

An interest rate cut courtesy of the Federal Reserve in September was welcome news for homebuyers contending with elevated mortgage rates. But it can also be strategically leveraged by existing homeowners, especially those considering borrowing from their home equity .

Not only is the average home equity amount over $300,000 now, and cumulative home equity levels are at a new record level nationwide, but interest rates here are declining again. The average rate on a home equity line of credit (HELOC) declined last week to under 8% . And home equity loan rates, while marginally higher, are still lower than they we

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