Finance
In Rhode Island, what is a 'home equity loan' and how does it differ from a HELOC?
AThey are identical products with different names
BA home equity loan disburses a lump sum at a fixed rate; a HELOC is a revolving line of credit at a variable rate✓ Correct
CA HELOC is fixed-rate; a home equity loan is variable-rate
DHome equity loans are only for first-time buyers
Explanation
A home equity loan provides a lump-sum disbursement at a fixed interest rate with fixed monthly payments. A HELOC is a revolving line of credit at a variable rate that the borrower can draw from and repay as needed.
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