Problem
Mary and Marty are interested in obtaining a home equity loan. They purchased their house five years ago for 174,000, and it now has a market value of $210,840. Originally, Mary and Marty paid $ 36,303 down on the house and took out a 137,697 mortgage The current balance on their mortgage is $ 102,423. The bank uses 75% of equity in determining the credit limit.
What will their credit limit be if the bank bases their credit limit on equity invested and will loan them 75% of the equity?
If the bank bases their credit limit on equity invested and will loan them 75% of the equity, their credit limit will be?