As a rule: don’t do it! Despite all the theoretical possibliites, the recent lessons of the stock market make it clear that it just isn’t worth putting your home at risk. One exception might be to help fund a 401(k) retirement program with a 100% employer match.

Too many people fail to take full advantage of these matching programs because they fear the dent it will put in their paycheck. Prudent use of cash from a home equity line of credit to help cover the “dent” can make sense. Not only will you get an immediate 100% return, you’ll also benefit from the tax advantages of both the 401(k) and the deductible home equity line of credit interest.