A home equity loans, home equity line of credit (HELOC), and cash-out refinancing are all forms of borrowing against your home’s equity. It’s essential to minimize risk as you borrow this way.
Watch the video to learn about Using Equity Without Risking Your Home, then test your knowledge at the end of the lesson.
Which of the following is an example of a first mortgage product?
A. Home equity loan
B. HELOC
C. Cash-out refinancing
D. Homestead exemption
A home equity line of credit, or HELOC, allows you to do all of the following except:
A. Build savings with a higher rate APY
B. Open a revolving line of credit
C. Make interest-only payments for 10 years
D. Borrow money up to a set limit
Accessing your equity is safer the longer you’ve owned, and you should only borrow for a specific purpose.
A. True
B. False