Before getting a home equity loan, take the time to check out the conditions of the loan. What will you have to pay in points and fees? One point equals 1 percent of the loan amount (1 point on a $10,000 loan is $100). Generally, the higher the points, the lower the interest rate. If points and fees are more than 5 percent of the loan amount, ask why. Traditional financial institutions normally charge between 1 and 3 percent of the loan amount in points and fees. If you pay more, then you need to do some loan shopping. Never take the first offer. The best advice is to compare, compare, and compare again.