Question

Charlene has lived in her home for 10 years and has a son who is about to start college. To obtain funds to pay for her son's schooling, Charlene might use a(n)

A)
home equity loan.
B)
open-end loan.
C)
wraparound loan.
D)
participation mortgage.

Answer 1

Charlene might use a home equity loan to obtain funds for her son's college expenses.

Step-by-step explanation:

Charlene, in order to obtain funds to pay for her son's schooling, might use a home equity loan. A home equity loan allows homeowners to borrow against the equity they have built up in their home over time. Since Charlene has lived in her home for 10 years, she may have accumulated a significant amount of equity that she can use to secure a loan for her son's college expenses.