There are pro's and con's for borrowing against your home and they all need to be taken into consideration before you proceed with any additional borrowing.

1. Borrowing Against Your Home – Pro’s and Con’s
There are pro's and con's for borrowing against your
home and they all need to be taken into consideration
before you proceed with any additional borrowing.
On the one hand the money you can borrow on your home
will be of a lower interest rate than most other forms of
loans and this can help you to reduce your monthly
repayments by using the equity on home for clearing more
expensive debt. With the ability to spread the term of
repayment over a much longer period you can generally
make quite an impact on reducing your monthly outgoings.
Use your budget to determine how much you are paying
on all your outstanding debt and then calculate what the
payments would be if they were all consolidated under the
one loan against your house. This will show whether that is
the best decision to make to help you manage your
finances more easily.
Where house prices are rising, you will have increasing
equity in the home that will allow you to borrow more
against it since the time you originally arranged your
mortgage.
The downside of home owner loans is where you are
already struggling to make your home mortgage payments
Borrowing Against Your Home – Pro’s and Con’s

2. and by borrowing more you will be putting your house on
the line and risk losing it. You certainly don't want the
banks to foreclose on your loan and if that looks eminent
then it would be unwise to increase your borrowings.
Also, if you are considering bad credit home loans, you
should be extra wary of the high interest rates that usually
come with this kind of loan. Calculate how much extra
payments on interest you will be making and only then
should you decide if a mortgage loan with bad credit is a
feasible solution.
If you calculate that you will not be able to make the
additional mortgage payments then it is better to sell off
other items that you have borrowed against to reduce
debt elsewhere rather than risk losing your home.
It might also be necessary to consider downsizing on your
home and buying something of a lower value so you can
reduce your mortgage accordingly until you get your feet
back on the ground.
Your home is your most valuable asset and you should
always do all you possibly can to retain ownership of it.
Borrowing Against Your Home – Pro’s and Con’s