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: Equity is the difference between what a home is worth and how much is owed on the mortgage.

  2. True or false: Home equity lines of credit are fixed-rate loans.

  3. Home equity loans are popular because:

    They are tax deductible.
    They are secured by a residence.
    The rates are lower than an auto or credit card rate.
    All of the above
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— Updated: April 1, 2006