A home equity loan/line of credit allows you to tap into the money you've invested in your home to finance larger debts, and usually at a lower interest rate than most revolving credit options. For example, a home equity loan can help you remodel your home, send a child or grandchild to college, or consolidate any outstanding loans. (Some states prohibit or restrict equity-based loans and lines of credit. Please check with me before you apply.)

Another advantage of equity-based lending is that the interest paid may be tax-deductible. (Be sure to consult a tax professional for details.) To find out what your current equity is worth, simply subtract your outstanding mortgage balance from your home's current value. Depending on the appraisal and loan program, your equity may be worth more than you originally thought. Take advantage of home equity loans with low fixed-rates and predictable payments and you'll receive all the funds up front. Usually, you can choose from the following equity-based financing that's best for your situation:

• Home Equity Loan: a fixed-rate loan that you usually receive as a lump sum. Repayments are similar to a fixed-rate mortgage - your repayments will be the same every month.

• Home Equity Line of Credit (HELOC): a revolving line of credit that is similar to a credit card, as you're able to withdraw and spend what you like, up to your maximum credit line. Also, as you pay back a withdrawal, the repaid funds will be available for future use.