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Michael had finished paying for his car, but he now has an unexpected $5000 expense that he cannot afford. Which of the following would be the best way for him to get the money he needs with the least amount of fees?

a. Get a Home Equity Loan
b. Sell his car
c. Sell his home
d. None of the above

User Ddruganov
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1 Answer

7 votes

Answer:

Get a home equity loan

Step-by-step explanation:

A loan for home equity is a form of second loan. Home equity loans enable one to finance at the value of one's home less any unpaid mortgages on the house.

In the given case, home equity loan is the cheapest source of finance for Michael as it ha various benefits for him. He can borrow this small amount of money easily on his home also the interest rate on such loans is less than others. Not only this he can also claim tax deduction on the interest he will pay on the loan.

User Kamran Maximoff
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