Question
A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to70% of their equity.
A couple wishes to borrow money using the equity in their home for collateral. A loan company will loan them up to70% of their equity. They purchased their home 10 years ago for $64,012. The home was financed by paying 15% down and signing a 15-year mortgage at 9% on the unpaid balance. Equal monthly payments were made to amortize the loan over the 15-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 nearestdollar) will theyreceive?
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