Every loan type has its own set of advantages and disadvantages, and home equity loans are no different. Here are the main points you need to consider with a home equity loan: - Pros: 1. Known monthly repayments 2. Typically lower interest rates than with other types of loan 3. Some tax advantages (interest payments may be tax deductible) 4. You can use the money for anything 5. Long loan terms are available | Cons: 1. Monthly repayments will be required (in addition to your original mortgage) 2. Might be more expensive than a HELOC 3. Your home is at risk if you fail to make your repayments 4. If you sell your home at a loss, you are responsible for the loan’s balance 5. You need equity in your home