Get an honest appraisal for your home's value

Some US home equity loan lenders use appraisers based in CA to appraise property in order to get a higher value for your home. While this allows you to qualify for a larger amount of money, it may leave you upside down on your house if you try to sell before paying off the home equity loan.

I recommend: Find an appraiser in your state by using Appraiser Finder’s Statewide Appraiser Search. AppraiserMatch works quickly to find you an appraiser located in your state.

Calculate the payment for a US equity mortgage

Many people take out a US home equity loan without looking at the long term debt and interest paid or their annual household budget. With home equity, US lenders may foreclosure on your home if you can't afford to make the minimum payment on your loan.

I recommend: Make a budget with help from CNN Money. Use Bank Rate’s home equity calculator to find the payment. Remember to add that payment to your first mortgage to determine the actual house payment you need to make each month.  

Consider if a US home equity line of credit would work better

A US home equity line of credit works similar to a credit card. Banks establish a limit based on the equity of the home and the borrower must pay interest once they tap into the line of credit. Don't take out a line of credit unless you need to; some banks look at a home equity line of credit as a negative point should you try to refinance your mortgage.

I recommend: US home equity lenders generally work with both lines of credit and a US home equity loan. Compare the closing fees and interest rate of a home equity loan with the interest rate and minimum payment on a line of credit. Lending Tree provides you with four quotes from different lenders to help you get the best deal possible. E-Loan strives to be radically simple to help you understand the lending process and get the best rates.