Millions of Americans are using home-equity loans and lines of credit for splurges. That’s risky. But for better investments, these loans can make sense.
Bankers love it when you borrow against your house. That’s reason enough to be wary of home-equity lending.
Yet millions of Americans are buying lenders’ pitches that our homes are a good source [...]

If you are thinking about a home equity line of credit, you might also want to consider a traditional second mortgage loan. A second mortgage provides you with a fixed amount of money repayable over a fixed period. In most cases the payment schedule calls for equal payments that will pay off the entire loan [...]

Before entering into a plan, consider how you will pay back the money you borrow. Some plans set minimum payments that cover a portion of the principal (the amount you borrow) plus accrued interest. But (unlike with the typical installment loan) the portion that goes toward principal may not be enough to repay the principal [...]

Many of the costs of setting up a home equity line of credit are similar to those you pay when you buy a home. For example:

A fee for a property appraisal to estimate the value of your home
An application fee, which may not be refunded if you are turned down for credit
Up-front charges, such [...]

If you decide to apply for a home equity line of credit, look for the plan that best meets your particular needs. Read the credit agreement carefully, and examine the terms and conditions of various plans, including the annual percentage rate (APR) and the costs of establishing the plan. The APR for a home equity [...]

More and more lenders are offering home equity lines of credit. By using the equity in your home, you may qualify for a sizable amount of credit, available for use when and how you please, at an interest rate that is relatively low.
Furthermore, under the tax law–depending on your specific situation–you may be allowed to [...]