401(K) loan fees VS. home equity loan fees
With a 401(k) loan, fees are variable: some employers will charge you for taking out the loan and some won’t. Some make you pay a fee of up to $100 just to fill out the paperwork, and some charge a yearly fee while the loan is outstanding. The same is true of home equity loans: some can be gotten for no fees except for an appraisal on your home ($200—$350), and some will charge you fees up front to get the loan or do the paperwork, which can add another $100 or $200 to the bill. But if you look carefully, you should be able to find a home equity loan that can be gotten for no fees, no points, and a very small appraisal fee, if any.
With both kinds of loans, the application process is usually fairly easy. You may have to fill out a form, or you may be able to do it over the phone. However, loans from either source take time to process, so if you’re desperate, ask your employer or lender how long each loan will take to process and when you will you have the money in hand.