Question

How does a home equity line of credit differ from a second mortgage?

Accepted Answer

With a home equity line of credit the borrower can draw money as they need it.

Answer

The terms can be used interchangeably.

Answer

A home appraisal is not necessary for a home equity line of credit.

Answer

The interest accrued on a home equity line of credit is *not* tax deductible.

Question 1 - Financing Practice Test for the Real Estate License Exam