IDNLearn.com offers a collaborative platform for sharing and gaining knowledge. Get comprehensive and trustworthy answers to all your questions from our knowledgeable community members.
Sagot :
Final Answer:
The primary characteristic of a home equity loan is B (It requires the borrower to pledge their home as collateral, using the home’s equity).
Explanation:
A home equity loan is a type of loan in which the borrower uses the equity in their home as collateral. Equity refers to the difference between the home's market value and the outstanding mortgage balance. This loan allows homeowners to borrow against this equity, typically at a fixed interest rate, and receive a lump sum of money. Since the loan is secured by the property, it generally offers lower interest rates compared to unsecured loans. The primary characteristic is that the home serves as collateral, meaning that if the borrower defaults on the loan, the lender can foreclose on the property to recover the owed amount. This makes option B the correct answer.
Your participation means a lot to us. Keep sharing information and solutions. This community grows thanks to the amazing contributions from members like you. Your search for answers ends at IDNLearn.com. Thanks for visiting, and we look forward to helping you again soon.