A revolving line of credit enables the homeowner to choose when and how to borrow against the equity in the home. In a closed end loan, the homeowner receives a lump sum for a particular purpose, such as remodeling or tuition. Although a home equity loan might allow you to take tax deductions you could not take with other types of loans, your home will be at risk if you cannot make the monthly payments. Ask about annual fees or transaction fees. Some companies offering home equity loans are only interested in how much money they can make.
Bank loans are likely to cost less than loans offered by finance companies.
Be especially careful if responding to home solicitations. Many home salespeople are very skilled at persuading you to buy things you don't need or want. Read everything before you sign it. Keep a copy of everything you sign. If you own your home, a reverse mortgage loan will pay you in monthly advances or through a line of credit.