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. Which of the following is not a wise use of a home equity loan?

    Finance a home addition.
    Pay for college tuition.
    Finance a European holiday for the family.
    Consolidate expensive debt.
  2. You want to replace the windows in your home. The remodel will cost $25,000. Which type of loan is better suited?

    Home equity loan
    Home equity line of credit
    It depends.
  3. True or false: Home equity lines of credit are not fixed-rate loans.


— Updated: April 1, 2006