Yes opeinging a home equity line of credit is a wise decision. It is my belief having one open will provide emergency money if ever needed. I would keep the balance on the line at zero until needed. Sometimes you never know when you will need extra money immediately. If a line of credit isnt open then it takes time to open one. During certain times in life you need money quicker then the banks can improve you. Especially in todays day and age of bank restrictions and new policies.
If we accept that credit is a necessary part of modern life, then we have to look at the best alternatives for obtaining and using credit. Home equity lines of credit or home equity loans allow consumers to obtain credit at much more reasonable rates than might be possible through credit cards or unsecured personal loans.
Over-borrowing with the usage of home equity loan or second mortgage is a very bad idea and could turn into disaster. Recent financial crisis is a good example how taking a big portion of loans, predicting the home market will be ever growing, can ruin debtors lives. Not only the home can be repossessed in case of non-payment, while the borrowers are left with broken family and depressed.
Home equity loans are often used to transfer debt. For example, a person might choose to take out a home equity loan to pay off credit card debt. However, the debt is not being paid off. It is still there and has simply been transferred. By transferring this debt and attaching it to a home, a person's most important financial asset becomes endangered.