Interested in obtaining a home equity loan

Assignment Help Financial Management
Reference no: EM131013409

You are interested in obtaining a home equity loan. Your condo was purchased five years ago for $125,000 and now has a market value of $156,000. Originally, you paid $25,000 down on the condo and took out a $100,000 mortgage. The current balance on your mortgage is $72,000. The bank uses 70 percent of equity in determining the credit limit. What will your credit limit be if the bank basis credit limit on equity invested and will loan you 70 percent of the equity?

Reference no: EM131013409

Questions Cloud

What is the annual operating cash flow of project in years : Bottoms Up Diaper Service is considering the purchase of a new industrial washer. It can purchase the washer for $3,000 and sell its old washer for $800. The new washer will last for 6 years and save $600 a year in expenses. what is the annual operat..
How far d from the earth surface is s : A spacecraft S is in a geocentric hyperbolic trajectory with a perigee radius of 7000 km and a perigee speed of 1.3vesc. At perigee, the spacecraft releases a projectile B with a speed of 7.1 km/s parallel to the spacecraft's velocity. How far d ..
How should the international shipment be routed : What are the consequences of wide fluctuations in exchange rates between currencies as in this case? How do these changes particularly impact a charitable organization?
New investment that it plans to finance using one-third debt : The Walgreen Corporation is contemplating a new investment that it plans to finance using one-third debt. The firm can sell new $1000 par value bonds with a 15 year maturity at a price of $950 that carries a coupon interest rate of 13.6 percent that ..
Interested in obtaining a home equity loan : You are interested in obtaining a home equity loan. Your condo was purchased five years ago for $125,000 and now has a market value of $156,000. Originally, you paid $25,000 down on the condo and took out a $100,000 mortgage. The current balance on y..
In terms of things going in your favor for an organization : In terms of things going in your favor for an organization, are there any specific financial tools, measurements, financial results that can be observed in order to evaluate whether or not a company is becoming too overextended in the area of leverag..
Calculate the altitude of the new orbit apogee : A satellite is in a circular orbit at an altitude of 250 km above the earth's surface. If an onboard rocket provides a delta-v of 200 m/s in the direction of the satellite's motion, calculate the altitude of the new orbit's apogee.
Energy and exergy analysis of passive solar distillation : Energy and exergy analysis of passive solar distillation system - Summarize and write up using the given format
Four to six pages on court room observation : Four to Six pages on Court Room observation. Go to a County Circuit Court and find a courtroom with TRIAL in progress and observe

Reviews

Write a Review

 

Financial Management Questions & Answers

  What will the value of this stock be four years from now

Wilson's Furniture is experiencing good growth so has decided to commence paying dividends starting next year. The first dividend will be $0.50 a share with annual increases of 4 percent in the dividend amount. The discount rate is 10 percent. What w..

  What is the portfolio beta

You own a stock portfolio invested 25 percent in Stock Q, 25 percent in Stock R, 20 percent in Stock S, and 30 percent in Stock T. The betas for these four stocks are 1.7, .6, 1.8, and .9, respectively. What is the portfolio beta?

  In hypothetical-given someone who has average risk tolerance

In a hypothetical example, given someone who has average risk tolerance, and that person needs to diversify, explain how the effects of portfolio risk for average stocks should impact their future investment decisions and why. Please show how this pe..

  Estimate of the the call options value-stock price model

You are attempting to value a call option with an exercise price of $90 and one year to expiration. The underlying stock pays no dividends, its current price is $90, and you believe it has a 50% chance of increasing to $125 and a 50% chance of decrea..

  Find the forward price F of forward contract maturing

Find the forward price F of a forward contract maturing in 1 year, given that the current price of the underlying stock is 150 and that the 1-year risk-free return on bonds is 18%. Mike takes a loan of P dollars from a bank today. In return he has to..

  Deviation for comparing two risky stocks in isolation

When would the coefficient of variation be preferred over the standard deviation for comparing two risky stocks in isolation? Fully explain your answer.

  Government and corporate bond fund-T-bill money market fund

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 4.4%. What is the standard devia..

  Confidence interval of the people in surrounding communities

The Friday after Thanksgiving is the biggest shopping day of the year. You are interested in the number of people who claim to have finished their Christmas shopping at the end of this weekend. On Monday, you take a random sample of people by standin..

  Purchase a currency option to purchase

Today's date is 1st December 2011. Reynolds Manufacturing has just imported $500,000 of Raw materials from an American company with payment due in three months time. The board are concerned about the adverse economic news relating to the UK econom..

  Invest in business facility improvement-pay interest expense

A firm can make any form of distribution to its shareholders using the free cash flow tht it generates. The underlying objective is to maximize shareholder wealth by increasing the firm's value. Invest in business facility improvement. Pay interest e..

  Financial statements and entity-level controls

Auditors need to use a top-down approach to identify controls to test. This approach starts at the top of an organization (financial statements and entity-level controls) and helps to link the financial statements to significant accounts, relevant as..

  What is the change percent

If the actual FY 2011-12 general property revenue is $100,342,726, the adopted FY 2012-13 is $99,217,048, the estimated FY 2012-2013 is $97,046,556, and the proposed FY 2013-14 is $90,703,193, What is the change percent?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd