It's no secret that NC property values are on the move. With viable pricing and a strong economy, greater Raleigh/Durham area is being bought up, leaving many residents with healthy home equity. If a homeowner has a lot of bad debt or isn't well diversified in investments, one solution may be to thaw some of that NC home equity by way of a home equity loan. While having money to do with what you want is a tempting option, make sure you're smart with your equity options. Here are some of the basics.

Equity Loans 101

Home equity loans are financial products designed to allow homeowners financial access to the growth in the value of their property. Homeowners often use home equity loans to pay off bad debt, such as high interest credit card debt or car loan debt, to fund their kid's college or to make home improvements.

Use a Pro

Be smart with your equity. Your home is likely your biggest asset, so protect yourself by consulting a professional before shopping for a loan. If you're looking to use some of your equity, one solution might be to talk to someone who can assess your finances and give you a sensible plan. Internet calculators and commission-based salespeople can't be objective. Find a reputable NC-based mortgage broker that specializes in your area that can run the numbers and help you reach a smart decision.

Be Careful!

Don't overextend yourself by taking out more money than you need. Over borrowing to spend frivolously on big ticket or luxury items not only reduces your equity, but needlessly increases the amount of the loan.

For More Information...

Bankrate.com: Objective information on rates and home equity terminology.

Dummies.com: No nonsense talk about making smart financial decisions.

Cyndi Popper is a writer and producer for 'Rob Black and Your Money', a financial television program in the San Francisco Bay Area. She also serves the program on-air, in a weekly segment entitled 'Women and Investing' Cyndi writes for numerous independent media groups, and has most recently collaborated on a financial book for PBS. Cyndi Popper is not a certified financial advisor.