# Don't Borrow Against Your House Right Now

> Two money experts warn against home equity borrowing as rates rise
- Title: Don't Borrow Against Your House Right Now · 24/7 Wall St.
- Summary: Two money experts warn against home equity borrowing as rates rise If you have a HELOC, pay it off within 36 months to avoid rising interest rates
- Keywords: heloc, federal reserve, suze orman, clark howard, home equity, variable rate, fixed rate mortgage, credit card debt, rate hike, collateral, Don't, Borrow
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/2026/09/21/two-money-experts-one-message-dont-borrow-against-your-house-right-now
- Author: Trey Thoelcke
- Published: 2026-09-21T13:35:44+00:00
- Read time: 1 min
- Topics: heloc, federal reserve, suze orman, clark howard, home equity, variable rate, fixed rate mortgage, credit card debt, rate hike, collateral
## Fed Rate Hike Impact
The Federal Reserve raised rates to 4.00% on September 16, 2026, the first hike in years
## Suze Orman's Warning
If you have a fixed mortgage, the rate hike doesn't affect your payment

> Variable rates move. Fixed rates stay fixed. So if you have a fixed rate mortgage, last Wednesday’s Fed decision did not suddenly change the interest rate on your existing mortgage.
## HELOC Risk Explained
Banks offer home equity lines of credit with floating rates that reset monthly

> The banks are trying to con you into taking out these HELOCs. It’s a floating rate, and they set up the payments so you’re never paying off the principal, only revolving interest.
## Credit Card Consolidation Trap
Using HELOCs to pay off credit cards often leads to higher debt and foreclosure risk

> You converted a call from a card issuer into a lien on your primary residence to save a spread that evaporates the first time the cards get touched.
## 36-Month Rule
Pay off HELOC balances within 36 months to avoid rate hikes

> If you can pay the balance back inside roughly 36 months, a line of credit can work, because you are exposed to the floating rate for a limited window.
## Howard's Predatory Pitch
Banks encourage HELOCs with no principal repayment, only interest that resets monthly

> Every time interest rates go up, they raise what you have to pay within a month. It’s a curse.
## Rate Hike Consequences
Floating rates on HELOCs increase monthly payments when rates rise

> You had a blessing, all this equity, and they turn around and say, take that vacation, go spend the money. Don’t worry about it. We’re going to lend you that money, and if you can’t pay it, we’re going to take your home from you.
## Fixed vs. Variable Rates
Fixed-rate loans lock in payments while HELOCs adjust with market rates

> If the project is longer, a kitchen renovation, a multi-year addition, anything you know will take years to repay, a fixed-rate home equity loan is the safer instrument.
## Key takeaway

If you have a HELOC, pay it off within 36 months to avoid rising interest rates