Home Equity Loans

What is the downside of using a home equity loan?

Often home equity loans are given to people with terms that allow them to pay only the interest on the balance of their line of credit each month. This means that the borrower never pays off the principal of the loan, and could end up paying out a significant amount of money just to have the loan. This is often written in the fine print of the loan documents, and is concealed from borrowers to make the loans more attractive.


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