<prompt> Human: I recently had a home appriasal and the home i owe about 110k on is apparantly worth closer to 170k now.I renecently heard about home equity loans. How ecactly do they work and is it reasonable to use one to, for example, put in hardwood floors?Thanks  <response>: Apply for a loan, if approved either they send you a check, or if its a HELOC its like a credit card that you use to pay for things. Then you start making payments to them. You can use the money for anything. There are no laws about what the money can be used for. Its your responsibility to use the money wisely. 