Freddie Mac CreditSmart Homebuyer U Practice Test 2025 – Complete Exam Prep

Making capital improvements to a house can offer several advantages, but one notable outcome is the potential for higher utility bills. The correct choice highlights that this consequence is not a benefit of capital improvements.

When homeowners invest in enhancements, such as upgrading to energy-efficient windows or installing better insulation, there may be an initial increase in utility costs during the transition period. However, these costs can be offset by the long-term savings created by improved efficiency and reduced usage, ultimately leading to lower utility bills over time.

In contrast, the benefits related to home equity, enhanced living conditions, and increases in property value directly reflect positive outcomes of capital improvements. Enhancing a property effectively contributes to its value and equity, creating a more comfortable living environment, and potentially increasing resale value, making those aspects true benefits of such investments.