Just because the banking industry is in turmoil and the housing market is going through an era of declining values doesn't mean that all consumers have stopped borrowing. Many still have a need to borrow against the equity in their homes.
The reasons to take out a home equity loan or a line of credit varies depending on circumstances. A homeowner may decide to borrow enough money on his home to remodel. He may want to use the equity in his home to buy a new car or truck. A small business owner may need to get a home equity loan or a line of credit to keep his business afloat. The big decision is making a determination as to which type of financing is best for his needs.
While the credit crunch has made borrowing for... or against... your home more difficult, home equity loans and lines of credit remain popular for those with equity. Stacy Johnson explains what these loans do and if you should consider them.