Bill and Ethel Patterson have a home with an appraised value of $180,000 and a mortgage balance
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Bill and Ethel Patterson have a home with an appraised value of $180,000 and a mortgage balance of only $90,000. Given that an S&L is willing to lend money at a loan-to-value ratio of 75%, how big a home equity credit line can Bill and Ethel 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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Bill and Ethel can obtain a maximum home equity credit line of 67500 Heres the breakdown M...View the full answer
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Sheikh Muhammad Ibrahim
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Related Book For 
Personal Financial Planning
ISBN: 9781439044476
12th Edition
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
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