home equity loan vs. equity line of credit?

Question

Why pay closing costs on a home equity loan if a home equity line can be obtained at a comparable fixed rate and tax deductable?
Am I missing something here?

Answer 1

Pay closing cost if the contract terms have been breached, such as early repayment or late payment penalty.

The interest / "closing cost" / administrative cost is to make up loss earnings of interest income otherwise earned by the lending institution, as if you would have otherwise paid throughout the contracted term at the agreed interest rate implicit in the lease.

Loans are tax deductible depending on the situation as is equity line of credit. Usually, tax deductibility is based on the badges of trade or equivalent; all individuals, relating to persons are otherwise assessible to tax in the calender or accounting year preceeding the year of assessment.

Answer 2

In most cases there will be no closing costs on either.

Answer 3

there should be no closing costs at your local bank