If you think you’ve mastered the material in this chapter, take our quiz. After you click the ”submit” button, the answers will appear below.

  1. True or false. Consolidating your high-interest credit card debts with a home equity loan is a safe and guaranteed way to wipe out debts.

    True
    False
  2. Which best describes a cash-out refinance?

    You refinance your mortgage for more than you currently owe, then pocket the difference.
    You take out a second mortgage using the equity of your home as collateral and pocket the cash from the second mortgage.
  3. True or false: Home equity lines of credit are not fixed-rate loans.

    True
    False