Which of the following is a feature of a home equity loan?
A) The interest rate on a home equity loan is higher than that on other loans.
B) The interest paid on a home equity loan is usually tax deductible.
C) A home equity loan is generally the first mortgage loan.
D) A home equity loan is a single-payment loan.
E) A home equity loan is an unsecured loan.

Question

Quizplus · Accepted Answer

The interest paid on a home equity loan is usually tax-deductible, making it a popular choice for homeowners. Option A is incorrect as interest rates on home equity loans are generally lower than other loans as they are secured against the property. Option C is incorrect as a home equity loan is a secondary mortgage loan, taken out against the equity in the property. Option D is incorrect as a home equity loan is typically repaid over a period of years with periodic payments, similar to a traditional mortgage. Option E is incorrect as a home equity loan is a secured loan, meaning it is backed by the value of the property.

Which of the Following Is a Feature of a Home