Home equity loans use ________ as collateral to secure the loan.

Question

Quizplus · Accepted Answer

Home equity loans are specifically designed to allow homeowners to use the equity they've built in their homes over time as collateral to secure a loan. This means that the bank or lender can foreclose on the home if the borrower is unable to repay the loan, making the home the collateral for the loan. This is why it's important to carefully consider if taking out a home equity loan is the right choice for your financial situation before committing to it.

Home Equity Loans Use ________ as Collateral to Secure the Loan