When a homeowner takes out a home equity line of credit (HELOC), that loan can only be used for home repairs and renovations.TrueFalse

The statement "When a homeowner takes out a home equity line of credit (HELOC), that loan can only be used for home repairs and renovations" is False.

A Home Equity Line of Credit (HELOC) is a revolving credit line that is secured by the equity in a homeowner's house. It provides the homeowner access to funds that can be used for various purposes, not solely limited to home repairs and renovations. Homeowners can utilize HELOC funds for a range of needs including consolidating debt, covering educational expenses, financing large purchases, or even for personal expenses.

It is advisable, however, to use HELOC funds responsibly, as borrowing against one's home can lead to financial risks if not managed properly. The flexibility of a HELOC is one of its appealing aspects, allowing homeowners to draw funds as needed and pay interest only on the amount utilized.