The stock market has had three great years of growth, averaging about 18 percent. The Dow is the highest it has ever been because of these 3 years of exponential growth. Many experts predicted 2015 would hold even greater promise, and at first it did.

But recently, our aggressive bull market has stalled, and is creeping into a decline. Over 3 days in August, it dropped 6.3 percent. This is the first time this year that the stock market has changed more than 3 percent (which normally happens frequently). So, what caused that decline?

There are numerous factors. The biggest factor is that investors are scared. The Dow started at the highest point it has ever been, how much higher can it realistically go? Especially since the Fed Stopped Quantitative Easing. Some experts are saying that the narrow trading range is from one half of the market being in a downtrend and the other half offsetting it. It is only a matter of time before it breaks.

Furthermore, the global economy is in trouble with Greece defaulting on its loans. China, the “economic powerhouse” is going through issues of its own. Finally, the Fed has also said that they will be raising interest rates. These factors, along with the 6.3 percent drop this month, foreshadow a declining market.

Everyone remembers the devastating crash of ’08. People went without jobs, had their retirements ruined, along with many other hardships. The economy has been doing well, especially during the past 3 years.

However, the economy is not as strong and stable as people want to believe. Many experts are saying we are due for another market correction, and the current events are showing the decline may have already started.

Nobody likes a doomsayer, and I’m not trying to scare you, I just want you to be prepared. So my questions for you are: Are you at risk? Can you afford to lose money again? How would that affect your retirement plans? If there was a way you could reap the upside of the market without the downside risk, would it be worth knowing?

What is Home Equity and How Can It Help Me?

Let’s start by answering the question, “What is home equity?” Home equity is the value given to a home after you minus the mortgage debt and any other charges or liens against the home. Basically, if you bought your home for $80,000 and have paid $40,000 of the mortgage off, you have no outstanding debts toward the home and your home now appraises for $100,000, you would have built up a total of $60,000 in home equity.

Home equity may be the best way to establish a substantial credit line or loan. Do you have a child going to college, need a small business loan, have a lot of credit card debt or large car payments? Borrowing from your equity first can actually save you money and/or hassles. Home equity can allow you to make a substantial investment that you may have otherwise never been able to do.

You do need to consider certain things while shopping for a home equity loan…

n How much money is available to borrow? Depending on individual credit history, some lenders may allow the borrowing of up to 85 percent of the appraised value of a home.

n Is the interest rate fixed or variable?

n Obtain a list of all the fees that will be charged in addition to the interest. Lenders may require payment only on the interest until the account closes or they may have a minimum monthly payment. Each individual should create a plan of how they intend to repay the loan.

n When the account is closed, it may be possible to re-negotiate with the lender to extend the life of the account or convert it to a fixed term loan.

In addition to getting a credit line for a large expense, the interest paid on a home equity loan may be tax deductible for loans up to 100 percent of the home’s value. Consumers should check with a tax adviser, but this tax break may make the effective interest cost less than other kinds of credits.

Whether borrowing for a major purchase, debt consolidation, education or retirement, for many, a house is their most valuable possession. By borrowing against the equity, the consumer risks losing their home if they are unable to make payments. By looking at these and other factors, you will be able to better determine if a home equity loan is right for your needs.

Holly Peterson is the owner of Elite Life Services and radio host of Safe Money Radio. She is a professionally licensed insurance producer specializing in retirement planning and safe money solutions. Holly serves all of Southeast Idaho. You can find her online at elitelifeservices.org or 99.9safemoneyradio.com.