Equity Home Loans

Ramon owns a home that is apraised for $132,600. The Balance remaining on his existing mortgage is $43,260,?

Ramon's credit union is willing to loan an amount up to 70% of the appraised value of a home. Based on this information what is the maximum potential amount of credit that available to Ramon for a home equity loan A: $92,820 B:$89,340 C: 62,538 D: $49,560

Public Comments

1. max credit = (0.70*appraised value) - existing mortgage have a nice day!
2. $92,820 132,600x.70
3. The answer is D. $132,600 x .7 = 92,820 (maximum loan) minus $43,260 (existing loan) = 49,560 additional equity available to be drawn for a home equity loan.