This is completely wrong. To use HELOC, you need to have equity in your house. In current market where house prices are down significantly, most of the folks h

This is completely wrong. To use HELOC, you need to have equity in your house. In current market where house prices are down significantly, most of the folks have either no equity or they are upside down on their mortgage. These folks can't get HELOC. Even if you could get HELOC, it may not be worth it. HELOC is amortized interest only like a credit card. That means you will keep paying towards interest for first few years before you even touch the principal. Also, HELOC rate is tied to Prime rate and if it changes your payment will change. Federal Reserve has kept the Prime rate too low since 2001 and I think it's bound to go up. Please be very careful (I can't stress this enough) if you are considering HELOC.