FWhen you borrow money and "guarantee" the financing with the equity in your home, you use your home as collateral

Refinancing a home, getting a second mortgage, taking out a home equity loan or a home equity line of credit (HELOC) are common ways people use their home as collateral to obtain home equity financing

Your home mortgage payment is the amount you owe on your mortgage and how much money you can get for your home if you sell it

Higher interest rates, finance charges, and other credit and closing costs can also increase the cost of borrowing money, even if you use your home as collateral

Consider your options and your budget. Be aware of the risks involved in using your home as security or collateral. If you can't repay the money, you could lose your home to foreclosure

There are unscrupulous lenders trying to target elderly, low-income homeowners and borrowers as clients

Unscrupulous lenders may contact you to offer you a supposedly favorable financing deal. They may say that your credit history doesn't matter

You need to know that legitimate lenders will give you the time you need to review the terms of the offer in writing and that they want you to understand them

Don't deal with a lender who wants you to get financing with higher monthly payments than you can comfortably afford