Question

All of the following cash needs are appropriately sourced from a home equity loan versus credit card or short term personal loan, except for:

A) renovating your home.
B) buying a new car which you plan to keep for 10 years.
C) going to Disneyworld with your family.
D) A,B and C are all correct.

Answer 1

A home equity loan is not an appropriate source for going on a family vacation to Disneyworld.

Step-by-step explanation:

Purchasing a home equity loan is not an appropriate source for going to Disneyworld with your family. Home equity loans are typically used for renovations or other home-related expenses, as they allow homeowners to borrow against the equity they have built in their homes. Buying a new car that you plan to keep for 10 years can also be an appropriate use of a home equity loan, as it is a long-term investment. However, going on a family vacation does not directly relate to your home and would not typically be funded through a home equity loan.

Therefore, option D is incorrect as it includes all of the above options, A, B, and C.