Home equity lines of credit can be yanked away at any moment. Unlike a mortgage, which is there as long as you keep making the payments, home equity loans shift power to the lender.
"A home equity line is basically a personal loan securitized against your house," Conarchy says. "It has all these outs where the banker can freeze the loan or call the loan. We saw this happen all the time in 2008. We teach people: You can't use a home equity line of credit as your rainy-day fund, because it might not be there when you need it."
If you lose a job, or your home value falls, the lender can end the loan.