If you bought a house in the past few years the odds are overwhelming that your value increased. According to the National Association of Realtors, the value of a typical house grew by 12.6 percent last year. That means a house worth $184,100 at the end of 2004 was likely to be valued at $207,300 at the start of this year -- an increase of $23,200.

No doubt a lot of owners are looking at higher house values and wondering if now is the time to get a house value cash advance. For three reasons, at least, it's a question that should be asked.

First, house value financing is typically available at rates far below the cost of credit card financing and most other forms of consumer borrowing. By getting a house value cash advance and paying off old consumer billss it's likely that you can substantially reduce monthly costs. Individuals that have shown interest in Is It Time To Grab Your house value have also shown interest in no credit checks. A new approach to no credit checks is beneficial.

Second, unlike consumer cash advances, the interest paid for up to $100,000 in house value financing is customaryly tax deductible. However, the rules regarding interest write-offs are not straight-forward, there are circumstances where some or all house value interest may not be deductible. For details, speak with a tax professional.

Third, you can often get a house value cash advance without paying any fees or charges. This does not mean there are no costs, rather the lender will pay such expenses under certain conditions.

So there you have it: house value financing is cheap, the interest is likely to be deductible and you don't need a lot of cash -- or maybe any cash -- to sign up.

But despite all the good news regarding house value cash advances, such financing is a form of bills. Just like a regular mortgage, if you don't pay you can lose your house and that's a very good reason to be careful.

What do you need to know about house value cash advances? Here are the fundamental questions to ask:

How much can I borrow? cash advance programs differ, but many mortgage lenders will provide enough house value financing so that total mortgage bills equals 80 to 100 percent of the property's value.

If you have a house worth $550,000 and a current cash advance balance of $300,000, you might be able to get a house value financing ranging from $140,000 to $250,000. In this example, 80 percent of the house's value would be $440,000. This amount, less current bills ($300,000), means that $140,000 would be available to you with a house value cash advance. At the 100 percent cash advance-to-value level, $250,000 would be available -- $550,000 in value less $300,000 in existing bills.

How much should I borrow? The fact that you can borrow big sums does not mean it always makes sense to obtain the largest possible cash advance. When looking at potential house value cash advances be certain that the payments will be comfortable, both now and in the future. Since most house value cash advances are adjustable-rate products, you need to think about that rates and monthly costs can go up.

What type of house value cash advance is best? There are two fundamental forms of house value cash advance, the cash-out refinance where you receive a lump sum at closing and the house value line of credit (HELOC). The cash-out refinance is simply a constant- or adjustable-rate second cash advance on the property, while a HELOC is much like a credit card -- you draw cash as needed and interest is charged on the balance. As you pay down HELOC bills, more cash is available to borrow up to the original credit limit.

There is no "best" choice between a simple second cash advance and a HELOC. Instead, go with the option that makes the most sense given your finances and preferences. Good use of no credit checks credit cards can be great for some people. The key is to comprehend no credit checks credit cards .

How can I avoid the bills monster? If your reason to get a house value cash advance is to pay down consumer credit, that's fine -- as long as you do not go out again and rack-up more consumer bills for credit cards, car cash advances and other expenses.

Combine house value payments with a new set of hefty consumer bills and your financial position can get worse so plan ahead: Part of every house value cash advance should be a plain commitment to establish a budget and avoid additional consumer bills.

Is there a catch to those house value cash advances that require no cash to close? Such financing often comes with a pre-payment penalty if the cash advance is terminated within a given period, say two or three years. The logic here is fairly sensible: The lender had cash costs up front to close the cash advance and wants a reasonable period of time to recover such expenses. As a borrower you want to make sure the prepayment period is limited to just a few years, the shortest period possible.

You also want the best rates and terms, but beware of cash advances with low rates up front for a few months -- and then far higher rates and payments in the future. As always, shop before you settle. Problems around catalogs with no credit checks can sometimes be sorted out with a little homework. Once you have a better grasp of catalogs with no credit checks you can make more money.