Speaking of extra money

On the topic of home improvements, one option is always a home equity loan. I don't think we've lived in our house long enough to have equity for a loan yet, but it's an idea to consider in the future. My mom made a huge mistake with her loan that I will make sure to avoid doing myself.

She took out a home equity loan to remodel the kitchen, fix some old plumbing, change the carpet, etc. She ended up buying a brand new car soon after and since she still had the extra money in her account from the equity loan, she used that to make the down payment on her car so the monthly payments would be lower. The problem is, the interest rate on the equity loan is higher than the interest on the car so she will end up paying more in the long run and now she doesn't have the cash to make those home improvements.

Maybe if she would've gotten some advice from a website like PersonalHomeLoanMortgages.com, she wouldn't be in this situation.