Home equity loans should be used for

Question

Quizplus · Accepted Answer

Home equity loans are typically used for major expenses, such as home improvements or education, as they allow homeowners to access the equity they have built up in their homes to fund these costs. Using them for frivolous or impulse purchases, such as buying dinner at a restaurant or weekend entertainment, can lead to debt and financial strain. Selling a car may be a reason to consider a home equity loan, but only if it is necessary for covering a major expense, such as a medical emergency, and the interest rates and terms of the loan make it a more viable option than traditional financing.

Home Equity Loans Should Be Used for