Moreover, according to the Schwab Investor Newsletter, 2004 was the first year in history that home equity lending increased more than consumer credit.

Yet even as homeowners rush to borrow, many do so without a full understanding what home equity credit is. For example, according to a June 2004 survey by Lending Tree: 80.2% of homeowners were unsure if a home equity loan and a second mortgage are the same thing. (They are).

There is concern as well that lending institutions have gotten too agressive in their home equity based lending practices. A recent government report notes that "in many cases, institutions' credit risk management practices for home equity lending have not kept pace with the product's rapid growth and easing of underwriting standards."

The purpose of this site is simple: provide consumers with the tools they need to 1) get the best deal possible when applying for home equity credit and, 2) use their home equity as prudently and effectively as possible.

Home equity lines of credit are among the most powerful and flexible financial tools available to the average person. It is our hope that through the tips and information provided on this site, you will become a truly savvy user of home equity credit and use this knowledge to achieve your goals.

However, also bear in mind that unwise use of home equity financing can quickly lead to serious financial problems. Anyone considering a home equity line of credit is encouraged to read this Federal Trade Commission brochure.