Some people choose to take the equity from their home use as a down payment on a rental property, to help fund their retirement.

Fund your children's education. The equity built up in your home is a great source of money to fund your children's higher education. There is no better or wiser use for your home equity than investing in your children's future. With the average bachelor programs costing close to $100,000, home equity is a good source to fund college costs.

Equity locked up in your home may be better invested elsewhere. One example would be in additional real estate by taking some of your home's equity and using it as down payment on a second home or investment property. If you believe real estate values will continue to rise, then you are achieving leverage on your invested cash. Or, if you feel other investments might yield better returns than real estate, equity may be tapped to make those other investments. Much depends upon your individual situation and a competent financial planned can help you understand your options appropriate to your individual goals and situation.

TRAVEL! To that great exotic or place you have always wanted to go. Stop reading the posters and ad's and just go! While the new Credit Card Laws are in effect pay off the Credit Cards, take a vacation, and use a little of that equity to have fun. Some places of interest could be Las Vegas, Bahamas, Europe, or Carribean. It's time to think of yourself and relax.

If mutual funds are averaging a 12% return, and you can borrow your equity from your home at 6%, it makes sense to invest that money in that way. Especially if you can pay low or no closing costs.