If the purpose is liquidity, a Personal Line of Credit (PLOC) is much better than a Home Equity Line of Credit (HELOC).
If housing prices drop, and/or banks start to fail, government regulators may tell banks to stop lending on HELOCs. In 2008, many customers who thought they had $ 100,000 HELOCs suddenly found that they could not borrow against their HELOC.
If you need to move or refinance, you can use a PLOC to smooth out the resulting cash crunch. Whereas a HELOC needs to be paid-off and/or refinanced at the same time, making the cash crunch worse.
HELOCs tend to have higher initial costs. You might need to pay for an appraisal, for loan documents to be filed with your local government, for loan underwriting, and for a loan officer's commission. HELOCs also cost money to pay off, because more loan documents need to be filed with your local government.
PLOCs and HELOCs tend to have similar annual fees. $ 50/year is typical.
If you do wind up borrowing against the line of credit, HELOCs tend to have lower interest rates than PLOCs. A difference of 3 percentage points per year is typical for borrowers with excellent credit and substantial home equity. Plus, HELOC interest is tax-deductible for many borrowers. (This depends on the borrowers' residence(s), income, equity, loan amount, and other factors.)