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the interest rate charged on a home equity line of credit is usually
than the rate charged on an unsecured personal line of credit.
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Brief Explanations
A home equity line of credit is secured by the borrower's home, which reduces the lender's risk. Unsecured personal lines of credit have no collateral, so lenders charge higher rates to offset higher risk. Thus, the secured home equity line of credit has a lower rate.
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