Finding the amount of loan

Reference no: EM131964252

Question: A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to 70% of their equity. They purchased their home 10 years ago for $72, 418. The home was financed by paying 20% down and signing a 30-year mortgage at 9% on the unpaid balance. Equal monthly payments were made to amortize the loan over the 30-year period. The net market value of the house is now $100,000. After making their 120th payment, they applied to the loan company for the maximum loan. How much (to the nearest dollar) will they receive? Amount of loan: $ (Round to the nearest dollar.)

Reference no: EM131964252

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