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Borrowing money to buy a home is just what we do in America. So, we give mortgage borrowing a free pass and often tend to make poor financial decisions based on the acceptance that it is “good debt.”.
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A home equity loan is a type of loan in which the borrower uses the equity of his or her home as collateral. The loan amount is determined by the value of the property, and the value of the property is determined by an appraiser from the lending institution.
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