MAKE THE MOST OF YOUR HOME MORTGAGE.

Byline: GREGORY J. WILCOX

Mortgages need managing.

And that fact apparently is a surprise to lots of homeowners, concludes a study by Harris Interactive for Calabasas-based Countrywide Financial Corp., the nation's biggest mortgage lender.

The study, conducted from Oct. 10 through 12, found that 91 percent of homeowners deemed equity in their primary home an important financial asset.

Yet there was not much understanding of how to wring the most out of a new or existing mortgage.

It takes more effort than just making the monthly payment on time.

``A number of homebuyers and homeowners are not factoring in the prominence of a mortgage in their overall financial portfolio and do not manage it as they would any other significant investment,'' said Dan Hanson, managing director of Countrywide Home Loans, said in a statement.

Greg McBride, senior financial analyst at Bankrate.com, an Internet aggregator of financial rate information and consumer advice, agrees that mortgages need managing.

``It really pays to evaluate your mortgage in the context of your overall financial situation,'' he said. ``It's more a matter of monitoring your mortgage relative to the environment of (interest) rates. You don't want to be passing up an opportunity to save a significant amount of money long term.''

For example, an older couple approaching retirement may think that paying off their mortgage makes the most financial sense. But there may be other options that have a better financial upside.

The study also found that homeowners are actually conservative when it comes to their equity. Six in 10 homeowners would consider tapping equity as a source of funds and 70 percent of those say they would use the money for home improvements.

Here's a mortgage management primer:

Understand the details of taking on a mortgage, learn about financing options and make a realistic assessment of your financial situation.

If your pay is commission based, you are self-employed or get supplemental income like quarterly dividends, loans with payment option features may allow flexibility to pay the minimum required in leaner months and fully amortized payments or more during periods of increased income. But beware of the possibility this could result in some added costs down the road.

Refinancing may be smart when you have an adjustable loan and rates are rising.

A cash-out refinance can leverage equity, providing money to meet personal and financial goals, including home improvements that may add to the property's value in the long run.

Opening a home equity line of credit (HELOC) to tap funds from available equity to be used for multiple purposes, or in an emergency. Interest rates and monthly payments are generally lower than on credit card or installment loans and the interest paid is often tax deductible (a tax adviser should be consulted). Plus, payments are not usually due until the money is used.

Using equity for the downpayment on a second home or other investments to diversify your portfolio.