Question
Evelynn has home that was recently appraised for
the appraised value, calculate the potential amount of credit available on a home equity loan.
Select one:
a.
b.
c.
d.
the appraised value, calculate the potential amount of credit available on a home equity loan.
Select one:
a.
b.
c.
d.
Ask by Bowers Thornton. in the United States
Mar 21,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
The potential amount of credit available on the home equity loan is $6,900.00.
Solution
-
Determine the maximum loan amount based on the appraised value:
-
Subtract the existing mortgage balance from the maximum loan amount to find the available credit:
Thus, the potential amount of credit available on the home equity loan is
Answered by UpStudy AI and reviewed by a Professional Tutor
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Simplify this solution Extra Insights
To find the potential amount of credit available on a home equity loan, first calculate 75% of the appraised value of the home:
Then, subtract the balance on the existing mortgage:
So, the correct answer is © $6,900.
Now, let’s explore some captivating details!
Home equity loans can be a fabulous resource for tapping into the equity built up in your home. They can help homeowners finance anything from kid’s college tuition to that long-desired kitchen remodel, and they often come with lower interest rates compared to personal loans!
When considering a home equity loan, it’s vital to remember that while it offers a way to access cash, you’re using your home as collateral. This means that if you’re unable to repay the loan, you risk losing your home! It’s always a good idea to plan and budget carefully before taking on such financial commitments.
