Haun and Mei have a home valued at $96,000 and an outstanding mortgage of $50,000.If their lender is willing to provide a home equity loan of up to 85% of market value,how much could they borrow using a home equity loan?
A)$14,400
B)$31,600
C)$36,800
D)$46,000
E)$81,600

Question

Quizplus · Accepted Answer

The lender allows a loan up to 85% of the home's market value, which is $96,000. 85% of $96,000 is $81,600. Subtracting the outstanding mortgage of $50,000, they can borrow $31,600.

Haun and Mei Have a Home Valued at $96,000 and an Outstanding