If you need to borrow money, home equity lines or second mortgages may be useful sources of credit. Initially at least, they may provide you with large amounts of cash at relatively low-interest rates and they may provide you with certain tax advantages unavailable with other kinds of loans. (Check with your tax advisor for details.)
Home equity lines of credit require that you use your home as collateral. This type of loan is based on the equity you have built-in your home. It is set up as a revolving line of credit and has a flexible payment schedule.