A HELOC could be a cost-effective way for homeowners to borrow money this September. Getty Images/iStockphoto

Borrowing home equity should always be done with care and precision. Failure to repay what's been borrowed, after all, can easily result in the home in question being foreclosed on, leaving homeowners in a worse financial position than they started in. It's critical, then, to not only calculate your potential payments in advance, but it's equally important to choose the right product, as home equity loans and home equity lines of credit (HELOC) operate in similar but not identical ways.

It's also important to time your application carefully. Ideally, you'll want to secure the funds when rates are low and the funding source, in this case, your home equity, is

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