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The couple acquired the money by taking out a loan against the equity in their home.

"I recommend it if the person is wise with their money," Mr. Gray said.

You, too, may be enjoying increasing equity in your home in Bakersfield's appreciating market. If you're considering borrowing against your equity, experts suggest you understand the terms and realize there are wise and poor uses.

Simply put, equity is the dollar amount between what you owe on your home and its value, said Julie Davis, a Bank of America spokeswoman in Atlanta. For example, if you're paid $300,000 for your home but it appraises for $400,000, you have $100,000 in equity.

You can tap into some of that equity in two main ways: through a home equity loan or home equity line of credit.

With the loan, you'd simply get cash and you'd start paying it back with interest. With a line of credit, you have access to the equity but it sits in an account until you're ready to use it, Davis said. If you spend it but replenish the money, you can spend it again.

"More people choose the line of credit rather than the loan," Davis said.

Today the two biggest uses of equity are to pay for home improvement projects and pay off credit cards, she said.

But experts urge prudence. If it doesn't add value to your home -- such as through a remodel -- or it doesn't yield another financial benefit, you may not want to use it, Davis said.

"The bottom line is to think interest rate," said Rick Swartz, senior credit analyst of Kern County Credit Consultants, a credit and debt advisory firm.

If using the equity means paying off high-interest debt, it may be a good use, Swartz said. But doing so requires discipline.

If a homeowner takes out a home equity loan or line of credit to pay off credit card debt and then maxes out the cards again, he won't have the equity to borrow against again, Swartz said.

But from a tax advantage, it makes sense to use equity to get rid of high-interest loans for two reasons, said Peter Brown, founder of Brown Armstrong Accountancy Corp. Not only can homeowners pay back the home equity loan at a lower interest rate than most credit cards, but the interest paid for the equity loan is tax deductible up to $100,000, he said.

"Those two things make it very worthwhile, tax-wise," Brown said.

Brown, Swartz and Davis all caution homeowners against using all their equity. Davis said most lenders won't lend 100 percent of equity, often stopping at 80 to 90 percent.

Homeowners sometimes consider using the equity for other purchases, such as a car. While that can work, they need to be careful.

"Depending on their financial situation, it's probably best to keep the home equity line and car separate," said Eric Burell, finance director at Three Way Chevrolet, Cadillac, Hummer, Saab.

Because paying back a home equity line of credit can take 10 or more years, the homeowner will likely have already traded in the car and will have to pay back the line of credit in addition to paying for another car, Burell said.

And qualifying customers can get zero percent financing for their car, he said.

"Never put your money into things that depreciate," Swartz said.

So what process should you expect when getting a home equity loan or line of credit?

Davis said it takes a week or two. The loan or credit line is technically a second mortgage against the house and closes just like a first mortgage. The lender will order an appraisal to determine the home's value and available equity.

In California, Bank of America doesn't charge a fee or closing costs to issue a line of credit, Davis said. The homeowner must pay back the money on time and can't go over his credit limit.

Lenders look at the homeowner's credit history to determine what interest rate he'll pay on the line of credit, said Kay LaRue, branch manager. A person with marginal credit might currently pay about 8.5 percent, she said.

A downside to lines of credit is if the prime interest rate rises and the homeowner has a variable rate loan, he could pay more, LaRue said. To avoid that possibility, the homeowner can get a fixed rate loan, but in the current market it will be around 9 percent.

If the home declines in value, nothing will change to the line of credit as long as the homeowner continues to make payments, she said. The line of credit is not based on changes in the market.

But, if the market changes and a homeowner takes out a new line of credit, a new appraisal would be ordered and the line given would be based on the new value, LaRue said.