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maw [93]
2 years ago
10

if someone has a home valued at $100,000 and they currently owe $60,000. what is the biggest home equity line of credit they can

get if the bank requirement for ltv is 90%.
Business
1 answer:
Akimi4 [234]2 years ago
5 0

Value of the house = $100,000

Amount owed = $60,000

Bank requirement is 90%

Therefore, the biggest home equity line of credit they can get is

= ($100,000 - $60,000) * 90%

= $40,000 * 90/100

=$36000

Home Equity Line Of Credit or HELOC is a variable-rate loan which allows to borrow a part of the pre-approved amount offered by the bank. This loan works similar to how a credit card works.

Similar to a home loan, the houses serve as collateral and repayment will include principal and interest. The repaid amount can be re-borrowed like a credit card.

To know more about home equity line of credit visit:

brainly.com/question/14059342

#SPJ4

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Answer:

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