Personal Finance 1st Edition by Jack R. Kapoor

Exercise 5

Calculating the Amount for a Home Equity Loan. A few years ago, Michael Tucker purchased a home for $100,000. Today the home is worth $150,000. His remaining mortgage balance is $50,000. Assuming Michael can borrow up to 80 percent of the market value of his home, what is the maximum amount he can borrow? (Obj. 2)

Step 1 of 4

Market value of the house is $150,000

Mortgage balance is $50,000

Michael can borrow up to 80% of the market value of his home.