Questions and Answers - Get Expert Answers to Your Queries

Answer:-

Using equity does not inherently increase repayments. Equity represents the portion of an asset's value that the owner truly owns outright, which can be leveraged for various purposes such as borrowing against it. While accessing equity might involve taking out loans or lines of credit, the impact on repayments depends on factors like interest rates, loan terms, and how the funds are utilized. Utilizing equity wisely can provide financial flexibility without necessarily increasing repayments, but it's crucial to consider the terms of any borrowing against equity to ensure it aligns with one's financial goals and capabilities.