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With credit card interest rates rising right through the roof, some homeowners may be wondering whether a home equity loan or line of credit ( HELOC ) is the way to get their debts under control. The answer is a definite maybe. While it's much harder to tap your home equity than it was in the past, it's not impossible. Yes, credit is much tighter in general these days, the decline in home values in recent years means that many homeowners no longer have any home equity to draw upon and banks are concerned about possible further declines in home values. But many homeowners still retain considerable equity in their homes, particularly those who don't live in states like Florida, Arizona, Nevada and California, which have borne the brunt of the housing market decline. Such homeowners continue to be attractive clients for lenders. And many homeowners retain untapped credit in their HELOC, which is still available for them to draw upon. Lower interest rates on a home equity lo...

The impact of falling home prices on home equity values has been well documented; but now, other areas are being affected, as well.In the board game Mouse Trap, a crank-operated device sets off a series of events that ends with one player getting stuck in the trap. Today's real estate industry seems to have its own game of Mouse Trap going on, as falling home prices create unexpected consequences that can catch homeowners, local governments, renters, and property investors off guard. Incredible shrinking home equity Through the end of September 2008, the Standard & Poor's/Case-Shiller home-price index had fallen more than 23 percent since its highpoint in 2006. That equals an average decline of $23,000 for every $100,000 of original home value. The impact on household home equity has been striking; existing home equity credit lines have been cut or canceled, and thousands of homeowners have fallen underwater on their first mortgages. Existing homeowners and new homebuy...

In a declining real estate market, anyone selling a home is desperately trying to squeeze home equity dollars out of a sale. More sellers are deciding to be their own brokers-a bold move that has equal amounts of risks and rewards. Compare Home Equity Rates Compare rates from up to 4 lenders for home equity GO » As the housing market continues to tank, homeowners are considering alternative ways to generate as much home equity as possible from their sale. The first thing on the chopping block is often a real estate broker's commission. In the past, when housing values were sky high, homeowners were willing to let a real estate broker claim a 5 to 7 percent commission. But the new declining market has changed everything, and many homeowners are trying to sell their homes without a broker. For Sale By Owner (FSBO)-the benefits Thanks to the Internet and a realization that FSBOs will sell on the market, the do-it-yourself approach to home sales has steadily increased over the years. A...

Trends in home equity borrowing during the past two decades have been dramatic; within the past two years, home equity loans have been on a virtual roller coaster ride. Just a year ago, homeowners were relying on them as ATM machines. Now, banks are yanking them from their product menus. Back in 1986, the IRS tax rules were rewritten to create deductions for homeowners that were similar to those enjoyed by taxpayers who owned income-producing property. The change precipitated a real estate crash, because tax advisors recommended that clients dump their rental properties. It also launched a new trend in home equity borrowing, because consumers could enjoy a deduction for interest paid on home equity loans. Compare Home Equity Rates Compare rates from up to 4 lenders for home equity GO » Enjoying home equity tax breaks Although there are some restrictions related to the size of the deductions-equity loans used for home improvements provide potentially higher deductions than those spent o...