How 2 solve for potential amount of credit available for home equity loan?

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Here is the problem: Ramon owns a home that was appraised for $ 132,600. The balance remaining on his existing mortgage is $ 43,260. Ramon’s credit union is willing to loan an amount up to 70% of the appraised value of a home. Based on this information, what is the maximum potential amount of credit that’s available to Ramon for a home equity loan?

3 Comments
  1. Reply
    Gregorio
    May 16, 2011 at 2:47 am

    $ 49,560 minus fees.

    Have Ramon call me! đŸ™‚

  2. Reply
    lillian
    May 16, 2011 at 3:08 am

    There is a homework section of the site you might try next time.

  3. Reply
    sunshine
    May 16, 2011 at 4:04 am

    49k is correct. If he shops his loan with a broker they can probably get him 80% or more instead of 70%. I am a mtg. broker.

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