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The nation's largest credit union, on the other hand, will let qualified members borrow up to 100% of their home's value, leaving them with zero equity.

And while not everyone is eligible to join Navy Federal Credit Union, anyone can join Pentagon Federal Credit Union, which lets homeowners borrow up to 90% on some home equity loans.

During the housing bubble, consumers used home equity borrowing to pay for everything from boats and gambling junkets (clearly bad) to cars and kitchen renovations (not so bad).

The problems these homeowners experienced during the financial crisis and recession taught us that even some "not so bad" spending should be scratched from our list of acceptable uses.

That means you can't always count on a HELOC to be there when you want to use it.

A HELOC might make more sense if you need to borrow smaller amounts over a longer period.

Most HELOCs require low, interest-only minimum payments for the first 10 years while the line of credit is open to use.

But in the 11th year, the line of credit is closed, and the principal must be repaid over the next 10 to 20 years.

You might be tempted to choose a HELOC because of its lower interest rate.

But since today's interest rates have almost nowhere to go but up, a HELOC's variable interest rate could end up costing you much more over the loan term than a home equity loan's fixed rate, even though the fixed rate is higher initially. Lenders can freeze or reduce your line of credit without warning if they learn of a change in your financial circumstances or a drop in your home's value.

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