Home equity lines. Max and claudia chadwick have a home with an appraised value of $180,000 and a mortgage balance of only $90,000. Given that an S&L is willing to lend money at a loan to value ratio of 75 percent, how big a home equity credit line can max and claudia obtain? how much, if any, of this line would qualify as tax-deductible interest if their house originally cost $200,000?