home equity loan

Rates on many home-equity loans, for example, are tied to the prime.

But too often, people take out home-equity loans to invest, and don't earn a return big enough to justify it.

"They use them like home-equity loans to invest in other cars."

One area he believes could be vulnerable is the interest deduction for home-equity loans of up to $100,000.

And home-equity loans have burgeoned most dramatically in recent years.

Mortgages and home-equity loans are also generally exempt from the rules.

The value of home-equity loans shot up 40 percent in 2004, to $398 billion.

In addition, homeowners could sharply scale back on home-equity loans.

"You can find lenders out there offering home-equity loans at 7.75 percent."

Beginning this year, most homeowners have more flexibility with home-equity loans.