How To Keep Your Home Equity Borrowing In Check

How can I keep my home equity borrowing in check?

Don't go overboard on your home equity borrowing. If you're going to borrow against your home equity, know what the goal is, have a specific purpose in mind, and also have a payment plan in mind so that it doesn't just drag on and never gets paid off. Always pay more than the minimum amount the lender is going to require when home equity borrowing. Say, "OK, I'm going to borrow this amount of money, but I'm going to have it paid off in three years." Or, "I'm going to have it paid off in four years." So eventually that home equity is intact again.