A Problem with Home Equity Loans Is the

question 16

Multiple Choice

A problem with home equity loans is the

• A)high rate of interest on these loans.
• B)difficulty in qualifying for these loans.
• C)short-term nature of these loans.
• D)temptation to spread payments over a long term.
• E)tax disadvantages of these loans.

---

Definitions:

Account

An account is a record summarizing all the transactions pertaining to a single item in the accounting equation.

Payment

The transfer of money, goods, or services from one party to another in exchange for something of value, often fulfilling a contractual obligation or debt.

Interest Rates

The expense associated with acquiring a loan, usually represented as a proportion of the sum lent.

Better Off

A condition in which an individual or group's situation improves in terms of economic welfare, happiness, or other measures of well-being.