For instance, as mentioned above. You just discovered your credit score dropped below 640 and you purchased your home three years ago for 358K had your house appraised at 475K great job! Then you took out an equity line of 75K maximizing your mortgage to 433K because your still in the green with a home valued at 475K 

Your home appraised last year even higher, at 575K fantastic! This year however, your home appraised out at a staggering 460K now you think you’ve lost in the game, but you haven’t you actually gained profit of 102K had your lender educated you on the dangers of equity barrowing. This is why it is so important to work with knowledgeable and reputable lenders.