Isaiah and Allison Burton have a home with an appraised value of $190,000 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 of a home equity credit line can Isaiah and Allison obtain? $ How much, if any, of this line would qualify as tax-deductible interest if their house originally cost $100,000? $
Isaiah and Allison Burton have a home with an appraised value of $190,000 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 of a home equity credit line can Isaiah and Allison obtain? $ How much, if any, of this line would qualify as tax-deductible interest if their house originally cost $100,000? $
PFIN (with PFIN Online, 1 term (6 months) Printed Access Card) (New, Engaging Titles from 4LTR Press)
6th Edition
ISBN:9781337117005
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter6: Using Credit
Section: Chapter Questions
Problem 5FPE
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Isaiah and Allison Burton have a home with an appraised value of $190,000 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 of a home equity credit line can Isaiah and Allison obtain?
$
How much, if any, of this line would qualify as tax-deductible interest if their house originally cost $100,000?
$
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