Which of the following is an attraction of a home equity mortgage loan?

The attraction of a home equity mortgage loan primarily lies in the tax deductibility of the interest paid on the loan. Home equity loans allow homeowners to borrow against the equity they have built in their property, and the interest on these loans can often be deducted from taxable income, subject to certain limitations set by the IRS. This tax advantage can make home equity loans a more appealing option for financing compared to other types of loans that do not offer similar tax benefits.

In contrast to this, higher interest rates than consumer loans may deter borrowers; shorter loan terms could lead to higher monthly payments and may not be attractive for those looking for more manageable payments; and requiring payment upon application can be a barrier to entry that may discourage potential borrowers from seeking a home equity loan. Therefore, the ability to deduct interest on these loans is a significant draw for many homeowners, which underscores the appeal of home equity mortgage loans.