Which of the following statements is true concerning home equity loans?

A. Home equity loans are generally installment loans with a 5-15 year term.
B. Home equity loans are secured by all of the borrower’s assets.
C. Home equity loan interest is never tax-deductible.
D. Home equity loan proceeds are generally restricted as to purpose.

To determine which of the following statements is true concerning home equity loans, we can analyze each statement:

A. Home equity loans are generally installment loans with a 5-15 year term.
To determine if this statement is true, we can start by understanding what a home equity loan is. A home equity loan is a type of loan where the borrower uses the equity in their home as collateral. These loans are typically used for large expenses, such as home renovations or debt consolidation. The term "installment loan" refers to a loan that is repaid over a fixed period of time with regular payments. Based on this information, this statement is likely to be true, as home equity loans are commonly structured as installment loans with a specific term, typically ranging from 5 to 15 years.

B. Home equity loans are secured by all of the borrower’s assets.
To determine if this statement is true, we need to understand how home equity loans are secured. Home equity loans are secured by the borrower's home equity, which is the difference between the market value of the home and the outstanding mortgage balance. This means that the loan is backed by the value of the property and not by all of the borrower's assets. Therefore, this statement is false.

C. Home equity loan interest is never tax-deductible.
To determine if this statement is true, we need to consider the tax implications of home equity loans. In general, the interest paid on home equity loans used for home improvements is tax-deductible, subject to certain limitations set by tax laws. However, if the funds from the home equity loan are used for other purposes, such as paying off credit card debt or financing a vacation, the interest may not be tax-deductible. Therefore, this statement is false.

D. Home equity loan proceeds are generally restricted as to purpose.
To determine if this statement is true, we need to understand any restrictions placed on home equity loan proceeds. Home equity loans do not typically have restrictions on how the loan proceeds can be used. Borrowers are generally free to use the funds for various purposes, such as home improvements, education expenses, or debt consolidation. Therefore, this statement is false.

Based on our analysis, statement A is the only true statement.

The true statement concerning home equity loans is:

A. Home equity loans are generally installment loans with a 5-15 year term.

This means that home equity loans are typically paid back over a period of 5 to 15 years in regular installment payments.

And your answer is?

http://en.wikipedia.org/wiki/Home_equity_loan