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Answered

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Why are most personal loans much smaller than mortgages and home equity loans?

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GinnyAnsweridn

Final answer:

Personal loans are smaller due to the lack of collateral compared to mortgages and home equity loans.


Explanation:

Personal loans are typically smaller than mortgages and home equity loans due to the lack of collateral involved. Mortgages and home equity loans are secured by the property being purchased or owned, reducing the risk for the lender and allowing for larger loan amounts. In contrast, personal loans are unsecured, leading to higher interest rates and smaller loan sizes.


Learn more about Loan Types here:

https://brainly.com/question/30104409


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