The biggest disadvantage of a home equity line of credit (HELOC) is that it is a variable rate credit product, which means the interest rate can change over time. This means that monthly payments on the line of credit can fluctuate, which can make budgeting and planning difficult. Additionally, if interest rates rise, payments on the loan can become difficult to manage.
Another disadvantage of a HELOC is that it is a revolving line of credit, which means that you can borrow up to a certain limit, pay back the borrowed amount, and then borrow again as needed. This can make it easy to borrow more money than you can afford to pay back, or to get caught in a pattern of making minimum payments, leading to a cycle of debt.