If you've already determined that a home equity loan is a viable option for you, make sure you ask yourself these important questions before you sign.

What is the interest rate, and will it change over the term of the loan?

If it's a fixed-rate loan, the interest will stay the same for the entirety of the loan. If it's an adjustable-rate loan, the interest rate will be adjusted periodically according to general interest rates. Make sure you find out if there is a cap on the rate if it does adjust.

What is the term of the loan?

This will tell you how long you have to repay your loan.

What will the monthly payment be?

Without this figure, it's impossible for you to come up with a manageable monthly budget that includes your expenses like utilities, groceries, and other bills.

Is a lump sum payment due at the end of the term?

You may need to be prepared to write a large check when the loan is over.

Is there a penalty if you pay off the loan before the end of the term?

Some lenders will charge you a fee if you pay off your loan before the term is over.

What are the fees associated with the loan, and what is the estimated total?

You'll probably be expected to pay some fees associated with processing your information and closing the loan. Ask your lender how much these fees will be so you know what to expect.

Under what circumstances can the lender call in the loan?

If you fail to make payments, some lenders will demand that you pay off the loan early.

What documentation do you need to provide?

You will probably need to submit information about your employment history, as well as your assets and debts.

When will you receive the funds?

It may take a while to process your information, so your loan may not be available immediately.