Evelynn has a home that was recently appraised for $127,000, and the balance on the existing mortgage is $88,350. If a bank is willing to loan up to 75% of the appraised value, calculate the potential amount of credit available on a home equity loan.

Question

Quizplus · Accepted Answer

The bank will loan 75% of $127,000, which is $95,250. Subtract the existing mortgage balance of $88,350 from this amount to find the available credit: $95,250 - $88,350 = $6,900.

Evelynn Has a Home That Was Recently Appraised for $127,000