Remember with a 401k loan, if you get a pink slip or leave it is due in full immediatley (I believe you have some time, but not much to pay it all back). If you don't meet the deadline it is considered an early withdrawl if you are less than 59 1/2 years old. You would incur a 10% penalty and have to pay taxes on all of it. Usually that adds up to a bill around 30% come tax time. 50,000 * .30 = $15,000 in taxes and penalties. If that happens at some point in the future and you don't have the cash on hand, you would need to take out that home equity loan, at some unknown interest rate in the future to avoid the 15,000 hit.