Question

Which of the following types of credits would best describes home equity loans? a. closed and secured b. closed and unsecured c. open and secured d. open and unsecured please select the best answer from the choices provided a b c d

Answer 1

The home equity loans are such loans often associated with line of credits and are for a short term. Such loans are open and secured types of credit facility.

What are home equity loans?

Home equity loans are generally referred to as such loans where the home of the borrower is kept as collateral and is open to be utilized for any legal purpose.

It is generally given for a short term and the repayment is often done monthly over a span of the entire term of the loan. As the collaterals can be used by the banks in case of defaults by the borrower, it is a secured type of loan.

Hence, option C; the above-mentioned facts describe that a home-equity loan is an open and secured type of credit facility.

Learn more about home-equity loans here:

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