Finance
In Michigan, a 'home equity loan' differs from a HELOC because it:
AUses the home as collateral but has a revolving credit line
BProvides a lump sum disbursed at closing with a fixed rate and set repayment schedule✓ Correct
CIs only available for investment properties
DCannot exceed 50% of the home's equity
Explanation
A home equity loan disburses a lump sum at closing and has a fixed interest rate with a set repayment schedule (like a second mortgage), while a HELOC is a revolving line of credit. Both use home equity as collateral.
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