7. Lifetime cap on rate increases (the amount that rate can be adjusted over loan's life) - A good HELOC is something you'll want to keep for awhile. Although interest rates have been at relatively low levels for a number of years, it wasn't too long ago that a 10% loan was regarded as a bargain! The point is that interest rates over time can rise dramatically. You'll want to find a HELOC with a lifetime rate cap that you can live with. Ask your loan officer to clearly spell out "worst case" scenario for rate increases for HELOC you are applying for.

8. Ability to convert to a fixed rate loan - When rates do rise, people often get skittish about their variable-rate debt. A useful feature to look for in a HELOC is ability to convert line of credit to a standard fixed-rate, fixed-term home equity loan (HEL). You likely won't get an APR as favorable as a newly issued HEL, but you also won't have appraisal or closing costs to pay if you convert. However, note that many lenders charge a fee for converting to a fixed rate loan.

9. Interest-only payments allowed - It is usually best to make regular principal payments on your HELOC balance. Yet a job loss or other emergency can make it a challenge to keep payments current. In these situations it is nice to have flexibility to lower your HELOC payment as much as possible without increasing your loan balance or raising red flags at credit rating agencies.

10. Unrestricted ability to repay principal without penalty - On other hand, you also want flexibility to pay down principal on loan when you choose. You may get a bonus from your job that you want to apply to loan or you may find a 0% balance transfer offer that is worth taking advantage of. In any case, a key component of a good HELOC is unfettered ability to repay principal.

Shop around and you will be able to find a home equity line of credit with many (if not all) of these features. Keep in mind that your bank is not only game in town. Credit card companies, mortgage bankers and brokerage firms have all entered market and offer competing products. Credit unions typically offer excellent terms and should not be overlooked. Also, there are many reputable on-line sources that have lower overhead costs and may be able to offer better terms than local bank.

If a fool and his money are easily separated, who introduced two?

If buy and hold is your philosophy, why do you need a broker?

If a tree falls in forest, does it ruin stock market for day?

If someone invented a computer program for investments that proved 100% correct all time, we would never know about it.

If you think market capitulated, you are not in a state of selling hysteria.

If 1,000,000 lemmings jump, can they all be wrong?

If you want to know what Greenspan thinks about economics, count times he smiles.

If you expect nothing of your portfolio, you will not be disappointed.

If you are a rational investor, can you benefit from an irrational market?

If you managed your money like government, you would take money from your neighbor and spend it on stock options that expire this week.

If you are confused with opinions of media, create your own.