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
2007-02-21 10:54:45 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
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.
2007-02-21 11:04:13 · answer #1 · answered by STEVEN F 7 · 0⤊ 1⤋
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!
2007-02-23 14:44:50 · answer #2 · answered by Corporate Banker 2 · 0⤊ 0⤋
The maximum is 45 thousand.
2007-02-21 10:58:51 · answer #3 · answered by Akbar B 6 · 0⤊ 1⤋
$35k.
75% of $120k = $90k. $90k - $55k = $35k.
2007-02-21 11:05:48 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋