The reality for many entrepreneurs, however, is that most-if not all-of those avenues are not available to them. The vast majority of small business start-ups have to rely on their own assets to get their companies off the ground, and that often means refinancing their homes or taking out a second mortgage.

If you believe all those ads from banks and mortgage brokers lately, people should be lining up outside your door to lend you money to refinance your home or take out a second mortgage at rock-bottom interest rates, often with promises of "no credit checks" and sometimes for up to 25% more than the property that will secure what the loan is worth. Like most "too good to be true" offers, those come-ons are, well, too good to be true.

What is true, however, is that there has probably never been a better time to get a new or refinanced mortgage in the last 30 years. Interest rates are near post-World War II lows, and lenders are eagerly competing with each other for new business. Nonetheless, shopping for a housing loan today still requires all the due diligence it always has.

"You have to look at your financial goals, your job or business venture stability and the amount-of time you plan to stay in a house when shopping for a mortgage," says Barbara O'Neill, a Certified Financial Planner and professor at Rutgers University. "All of those factors come into play."

Most small business owners have to rely on their own assets for funding.

For example, a couple in their early forties looking to start a new business may want to make sure their home mortgage is paid off before an early retirement, or they may want to avoid having to pay a mortgage and college tuition bills at the same time. For them, a fixed-rate 15-year mortgage may make the most sense.

"A 30-year loan might be okay for a young couple buying a first house, but I'm not a big fan of starting all over with another 30-year loan if you already have some equity in a house," O'Neill says. If payments on a 15-year mortgage are too high, one tactic she suggests is trying to pick up where you left off on your old mortgage. In other words, if you had 18 years remaining on a 30-year mortgage on your first house, try to get a 20-year mortgage on a trade-up purchase. Any excess cash generated by the refinancing can be invested in your business venture.

On the other hand, a 30-year loan can make a lot of sense for working people and those whose business ventures are in the earlier stages, says Diahann Lassus, a principal in Lassus, Wherley & Associates, a New Providence, N.J., firm that specializes in family financial planning. "I have a concern about working families or small business owners taking a 15-year mortgage and then running into problems they hadn't expected," she says. "If you have a 30-year mortgage with a smaller payment, you will be able to carry it longer if you are out of work for a period or if your business hits some troubled times. And if you want to pay it off faster, you can always prepay some of the principal."

Most mortgages don't charge any penalty for prepayment of principal, but if Lassus's strategy is the one you choose, make sure that's the case with your lender.

Fixed-rate mortgages are generally available for terms of 30, 20, 15, and 10 years, according to the Mortgage Bankers Association of America. There are also bi-weekly mortgages that shorten the repayment period by calling for half the monthly payment every two weeks. Since there are 52 weeks in a year, you make 26 payments equal to 13 monthly payments every year. These loans can make sense for people who get paid every two weeks.

Borrowers also have to choose between fixed-rate and adjustable rate mortgages. With a fixed-rate, the interest rate you get at the start remains the same for the entire term of the loan. Adjustables, called ARMs, usually offer an initial interest rate that is two or three points lower than the best fixed rates available. However, the rate is adjusted-=up or down--based on prevailing market conditions at preset intervals, such as every year.

Home equity is an importance source of financing for many entrepreneurs.

The lower interest rate in the first year of an ARM can make it possible to borrow more money than you could with a fixed-rate loan because the initial payments are smaller. That can make sense if you are certain your income is going to increase in the years to come. However, financial experts are wary of ARMs for working people.

"I really don't encourage young people to take ARMs, because they just don't know what is going to happen in the future," says Lassus. "The risk is just too great that if interest rates change in the future, they are going to go up. I think we are at or near the bottom of where mortgage rates will be for foreseeable future."

O'Neill points out that ARMs can be a good deal in a tight time frame, such as when you expect to stay in a house for just two or three years before selling it. Most ARMs limit yearly rate increases to 2, and many also feature a lifetime cap of 5 to 7. That limits your risk over a short period of time.

When does it make sense to refinance an existing mortgage? The old rule of thumb used to be that interest rates had to drop at least a full percentage point before refinancing made sense, in order to cover closing costs on the new loan. In today's competitive market, however, that is no longer the case. Many lenders now offer low-cost or "no-cost" refinancing packages, although in reality closing costs still exist--they are just covered by a slightly higher interest rate or included in the amount that is financed.

"The whole environment of refinancing has changed because interest rates are so low," says Lassus. "It literally can make sense to refinance right after you have just closed on a new mortgage or another refinancing."

She recently had a client who refinanced his mortgage at 7%, then refinanced again--with the same lender--30 days later at 6.5%. "The reason it made sense was because he didn't have to repay many of the closing costs, such as the appraisal fee," she explains. "There are some real creative ways to take advantage of fast-moving interest rates."

In essence, refinancing is simply the process of taking out a new mortgage and using the money to pay off the current mortgage. There are many good reasons to consider doing this, according to the Mortgage Bankers Association of America, such as:

* To save money with lower interest rates by getting a lower monthly payment.

* To convert an adjustable-rate mortgage (ARM) to a fixed-rate mortgage.

* To build up equity in your home faster by shortening the term of the loan.

* To convert some of your equity to cash for investment in a new business venture, home improvement projects, college tuition or other major purchases.

As with a new mortgage, anyone in the market for a refinanced mortgage should shop around, talk to several lenders and negotiate to get the best deal possible.

Personal assets such as savings and insurance policies can be tapped for funds.

New or refinanced mortgages are not the only source of personal financing available to new business owners. Among the others to consider are:

* Personal savings. In fact, this is one of the most common ways entrepreneurs have financed new business ventures in the past. Choosing the right type of business structure (sole proprietorship, limited liability corporation, etc.) can help you maximize the efficiency of personal savings invested in your business. If you are uncomfortable investing your nest egg directly in your business, you may be able to use those funds as collateral to secure a loan from a bank or other lending institution.

* Other personal assets. While their home is the single biggest asset for most individuals, other assets can provide alternative sources of funding for a new business. Among them are the cash value in life insurance policies; luxury items such as vacation homes, boats and recreational vehicles; even cash advances on credit cards.