{$}{$}{$}{$} your home is your castle {$}{$}{$}{$}

Your home is your castle – and sometimes it’s also your bank. The
equity in your home – the current appraised value minus the amount owed
on the house – can be tapped through loans at lower interest rates than
credit cards. This chapter defines the types of home equity debt and the
pitfalls of each.

Equity is the difference between how much the home is worth and how much
you owe on the mortgage (or mortgages, if you have more than one on the


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