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Home Equity Loans Are Popular with Finance Companies

Question 28

Multiple Choice

Home equity loans are popular with finance companies. Which one of the following statements about home equity loans is not correct?


A) These loans allow customers to borrow on a line of credit secured with a second mortgage.
B) Interest payments on home equity loans are not tax deductible.
C) Bad debt expenses on home equity loans are lower than on many other types of finance company loans.
D) The average outstanding balance on home equity loans was $85,472 in 2007.
E) If the borrower defaults on the home equity loan,the finance company can seize the house.

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