Finance
What is the 'Home Equity Loan' and how does it work in Oregon?
AA loan that increases the value of your home equity
BA second mortgage using home equity as collateral, with a fixed loan amount and term✓ Correct
CThe primary mortgage used to purchase a home
DAn Oregon-specific government program for homeowners
Explanation
A home equity loan (HEL) is a second mortgage where the borrower receives a lump sum secured by the equity in their home. It typically has a fixed interest rate and set repayment term. Distinguished from a HELOC (line of credit), the HEL provides a fixed amount upfront. Interest may be tax-deductible if used for qualified purposes. Oregon homeowners commonly use HELs for renovations or debt consolidation.
Related Oregon Finance Questions
- An Oregon buyer is financing a home with an adjustable-rate mortgage (ARM). Which of the following is the 'index' most commonly used to determine rate adjustments on ARMs?
- An Oregon borrower's loan is being 'serviced' by a company different from the original lender. 'Loan servicing' refers to:
- Under the Dodd-Frank Act, what is a 'Qualified Mortgage' (QM)?
- What is a 'short sale' in Oregon real estate and what are its tax implications?
- Under the Homeowners Protection Act (Private Mortgage Insurance Cancellation Act), a borrower can request PMI cancellation when:
- Oregon's Home Equity Conversion Mortgage (reverse mortgage) program allows seniors to:
- Discount points paid at closing are used to:
- A 'jumbo loan' refers to a mortgage that:
Practice More Oregon Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oregon Quiz →