Basically you take out a liability on another liability.

One of the biggest mistakes many individuals do is mistake thier home for an asset which is one source of potential financial problems in the future. Many home-owners also approach home-ownership the wrong way. That is my opinion.

A home is the biggest illusion of wealth for the middle class.

You home is a place where you live in and not an ATM. Use your home for the purpose it was intended. Live in it. That's it.

If you want to transform your home from a liability to an asset you will have to rent it out and make sure that you will have positive cash-flow from the rental income otherwise it will remain a liability.

Home-ownership is great but the wrong approach to it and how you use your home can have a very negative impact on your finances.

Disadvantages of Home Equity loans:

The home equity loan should be taken only if the borrower is sure that he or she will be able to repay the loan. Or else the home may be lost. The loan amount is dependent on the equity available in the home.