Market value of equity to determine their credit limit

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Reference no: EM131444472

Mary and Marty are interested in obtaining a home equity loan. They purchased their house five years ago for $170,000 and it now has a market value of $216,537. Originally, Mary and Marty paid $34,628 down on the house and took out a $135,372 mortgage. The current balance on their mortgage is $99,016. The bank uses 65 % of equity in determining the credit limit. What will their credit limit be if the bank uses the market value of equity to determine their credit limit and will loan them 65 % of the equity?

If the bank uses the market value of equity to determine their credit limit and will loan them 65% of the equity, their credit limit will be $ _?_

Reference no: EM131444472

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Market value of equity to determine their credit limit : Mary and Marty are interested in obtaining a home equity loan. They purchased their house five years ago for $170,000 and it now has a market value of $216,537. The current balance on their mortgage is $99,016. The bank uses 65 % of equity in determi..

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