In the never ending battle between believers in home equity and the proponents of refinance, the rhetoric is often passionate and heartfelt. Battle lines have certainly shifted over the past several decades and there have been exhilarating victories and crushing defeats experienced by both sides.

Just a few short years ago, refinance seemed to be an almost unstoppable force in the land. During these boom years for the housing sector, advocates of refinance were everywhere, touting the latest 125% mortgage schemes as the only rational way to proceed and decrying home equity proponents as financial dinosaurs, trapped and sinking slowly and surely into the tar pit of progress. For their parts, the home equity side seemed content to keep a low profile and mutter "you’ll be sorry someday" to no one in particular.

Surely enough, the housing bubble soon burst in a spectacular explosion of squandered capital and ruined careers. The refinance crowd seemed nowhere to be found and absolutely no one not already embroiled in a bankruptcy hearing would admit to having even considered a 125% mortgage. The home equity bunch, however, could be found everywhere, smugly chirping "I told you so" to anyone who would listen.

Now, as we look back on the first decade of the twenty-first century, the dust has settled, the smoke has cleared, and the battle lines have become largely stagnant. Time to stir things up with a rematch.

On the home equity side of the argument, it is still as true as ever that the greatest security one will know is the peace of mind in owning one’s own home, or at least as big of a percentage of it as one can afford. Borrowed money is always at risk of default and the prospect of losing one’s home must never be taken lightly.

The refinancers however can fairly argue that the worst of the economic shakeup has passed and home prices have probably fallen as low as they are going to. The best time to invest in almost anything is near the end of a recession and there is no easier or more economical way of raising cash than through the equity in your home.

Both arguments still have their merits, so we’ll call this match a draw. Which side of the debate you ultimately come down on will depend solely on your personal financial situation and your appetite for risk.