Home with an appraised value

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David and Joan Mead have a home with an appraised value of $195,000 and a mortgage balance of only $95,000. Given that an S&L is willing to lend money at a loan-to-value ratio of 70 percent, how big a home equity credit line can David and Joan obtain? How much, if any, of this line would qualify as tax-deductible interest if their house originally cost $100,000?

Reference no: EM13849050

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Home with an appraised value : David and Joan Mead have a home with an appraised value of $195,000 and a mortgage balance of only $95,000. Given that an S&L is willing to lend money at a loan-to-value ratio of 70 percent, how big a home equity credit line can David and Joan obtai..

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