Home equity loan borrowing costs are declining as the Federal Reserve continues to cut interest rates. Wipada Wipawin/Getty Images

If you've been noticing your home value increasing in recent years and contemplating borrowing from it with a home equity loan , there's something to keep in mind before getting started. You won't generally be able to borrow all of the equity you've accumulated, even if it's robust right now. Depending on the lender in question, you'll typically be capped at 80% , leaving a 20% equity buffer, offering financial security both for you and the lender.

But that doesn't mean that now isn't still a smart time to borrow.

With the median home equity amount around $313,000 right now, borrowing $60,000 will leave more than 80% of your equity untouched. S

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