Let's face it Americans are much better at spending than saving. My ex-wife can testify to that. The national savings rate is typically one of the lowest in the world. In June of 2006 it was just announced the average American managed to spend more than he made taking a page from the book of the U.S. Congress who makes that a habit.

 

Regardless of your situation everyone should have their eyes open and be aware of all the terms and conditions of the loan. When in doubt have a friend, relative, attorney review the papers. Don't be afraid to ask questions. Make sure you understand everything before you sign the documents.

The home can be the source of funds in an emergency only if the home is not fully leveraged to meet short term spending frenzies.