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Because no one can either disappear along with the house or hide it during defaulting the loan. In fact, one would wish to make payments in priority if the house is on loan.
Lenders may be more liberal because they view home equity loans as relatively safe. You can’t disappear with your house or hide it if you default on your loan, so the lender has a good chance of collecting the debts. Also, you are likely to make your payments a priority if your home is on the line.
The advantages of home equity loans and are: it has low interest rate, it is easy to qualify for home equity loans, payments made on a home equity loan may be considered as tax deductible, large amount of loan can be taken by borrowers with this type of loan. |
