A home equity loan can be risky because the lender can foreclose if you don’t make your payments.

Question 4 of 10 A home equity loan can be risky because the lender can foreclose if you dont make your payments. True False Question 4 of 10 A home equity loan can be risky because the lender can foreclose if you don’t make your payments. True False

The correct answer would be TRUE
A home equity loan is a loan that uses your home’s equity or
your property’s worth as collateral and allows you to borrow
against it. One should be very cautious while applying for a home
equity loan or line of credit against your home since it can be a
risky move. The consequences can be dire if you don’t pay it
back.Your property acts as a financing safety net for the lender in
case you don’t pay. So if you don’t pay, the lender it is within
their right to take your home to satisfy the debt. This is why home
equity loans can be considered a higher risk, because you can lose
your most important asset if something goes wrong.

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