Yara owns a home that was recently appraised for $189,000. The balance on the existing mortgage is $84,450. If Yara's bank is willing to loan up to 75% of the appraised value, find the potential amount of credit available on a home equity loan.

Question

Quizplus · Accepted Answer

First, calculate 75% of the appraised value: 0.75 * $189,000 = $141,750. Then, subtract the existing mortgage balance from this amount to find the potential credit available: $141,750 - $84,450 = $57,300.

Yara Owns a Home That Was Recently Appraised for $189,000