A home equity line of credit is a type of revolving credit in which your home serves as collateral. Because the home is likely to be a consumer's largest asset, many people use their loan only for major items such as education, home improvements, or medical bills and not for day-to-day expenses.

How much you can borrow on your house depends on how much equity you have in the property. Also your general credit rating will affect the interest rate you receive.

The best way to know if you are getting a good deal on a home equity loan is to compare different loan plans. Be sure and compare interest rates, late fees, and the general terms and conditions.