As a homeowner you've watched your equity grow over the years. It's a valuable nest egg, something you can put towards your children's tuition, valuable and exciting home improvements or even to take care of old debts. With a home equity loan, you can borrow against your home's equity and spend the money on anything you choose. Plus, home equity loans have special advantages over average consumer loans, including lower interest rates and the interest is tax-deductible.

You can borrow as much as 100% in the equity of your home, and some lenders let you take out as much as 125% of your home's value. Payback is flexible: you can pay off your home equity loan in as little as one year, or even up to 30.

Some things to remember about a home equity loan:

• Home equity loans allow you to make home improvements that can boost your home's value when it's time to sell. Find out which home improvements in your area fetch the highest price at resale before you spend your funds on any renovation project.
  
  
• When you take out a home equity loan, your house will be used as collateral. If you are unable to meet your payment, you risk foreclosing on your home.
  
  
• Having built up equity in your home does not guarantee you are can manage the added monthly expenses of another loan. Make sure you will be able to work those extra loan payments into your existing budget.