Ray is working with several customers to find the best product for their situation. For which two scenarios should Ray recommend a Home Equity Loan?
A. Scenario 1: Emma needs to make repairs to her fixer-upper. She cannot tackle them all at once and needs to do the work slowly, over time. She also does not know how much she needs for each project.
B. Scenario 2: Monica and Leo are adding on an in-law suite to their house for Leo's mother. The project has a planned budget and an expected timeframe for completion.
C. Scenario 3: Gary's daughter is in college and has the opportunity to study abroad for a year. There are some unexpected expenses that they need to cover. They only need the money for these short-term expenses and are looking for a way to borrow the money at a lower interest rate.
D. Scenario 4: Joan's mother has been dealing with health issues and occasionally needs help covering her bills. Joan cannot help her mother without tapping into a source of extra money. She only needs the money occasionally and cannot predict how much she will need to cover each time.
Answer (1)
Ray should recommend a Home Equity Loan for Monica and Leo's planned renovation project and potentially for Joan's unpredictable financial needs for her mother. These scenarios involve clear financial goals that can be supported through home equity. Other scenarios involve unpredictable expenses and are less suitable for home equity loans. ;
