Home equity loans are similar to other installment loans except

Question

Quizplus · Accepted Answer

Home equity loans are similar to other installment loans in that they are repaid in fixed amounts over a set period of time. However, the interest paid on home equity loans is generally tax deductible, unlike other loans. Option A is incorrect because interest rates on home equity loans vary depending on various factors such as credit score and equity in the home. Option C is also wrong because home equity is a requirement for obtaining a home equity loan. Options D and E are incorrect as home equity loans are secured loans that use the borrower's home as collateral.

Home Equity Loans Are Similar to Other Installment Loans Except