Which of the following is typically true about home equity loans?

Home equity loans are generally secured loans that allow homeowners to borrow against the equity they have built up in their property. One of the significant characteristics of home equity loans is that the interest charged on these loans is often tax-deductible, provided that the funds obtained are used to buy, build, or substantially improve the home that secures the loan. This tax benefit makes home equity loans an attractive option for homeowners looking to finance major expenses.

The ability to deduct interest is enabled by the IRS tax rules, which can lead to substantial savings over the term of the loan. Therefore, home equity loans not only provide access to cash but also offer financial advantages through potential tax deductions, making option C a fundamental truth about them.

In contrast, other statements regarding home equity loans do not universally hold true, such as the notion that they require no credit check or that they have high upfront fees. While some lenders may have varying policies, it is commonplace to conduct credit checks to assess the borrower's creditworthiness. Additionally, while some home equity loans might carry high upfront fees, many lenders offer competitive products with reasonable costs. Furthermore, the idea that interest charges are not tax deductible also contradicts the typical treatment of home equity loans under current tax law.