Equity Home Loans

given the following information .determine the maximum credit limit available on a home equity loan.?

give the following information ,determine the maximum credit limit available on home equity loan. market value of home $120,000 maximum% of value 75% balance due on existing morgage 55,000

Public Comments

1. The maximum is 45 thousand.
2. Maximum loan total: $120,000 x 75% = $90,000. Maximum equity loan: $90,000 - $55,000 = $45,000. This should be in credit, not taxes.
3. $35k. 75% of $120k = $90k. $90k - $55k = $35k.
4. In your scenerio it would be $35,000. However, some banks will allow you to take up to 100% of the equity in your home in the form of a line of credit. The rate is higher, but the option is there if it makes sense. Good luck!