On equity lines, you only pay interest on the outstanding balance. Use an equity loan when you need all the money up front e.g. home improvement, debt consolidation. Not checking the lifecap on your equity line. Be prepared to pay payments at higher interest levels if rates move upwards. Getting a home equity loan from your local bank without shopping around.
Many consumers get their equity line from the bank that they have a checking account with.
Use your bank, but shop around first. Not getting a good faith estimate of closing costs. Your mortgage company is required to provide you with a written good faith estimate of closing costs within 3 working days of receiving the application. Assuming that your home equity loan is tax deductible. In some instances your home equity loan is NOT tax deductible.