Finance
A home equity loan differs from a HELOC in that a home equity loan:
ADoes not use the home as collateral
BProvides a lump sum with a fixed rate and scheduled repayments✓ Correct
CIs a revolving line of credit
DDoes not affect the first mortgage balance
Explanation
A home equity loan (second mortgage) provides a lump sum at a fixed interest rate with scheduled monthly payments. It is similar to a first mortgage in structure. A HELOC, by contrast, is a revolving line of credit.
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