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Bob and Jane would like to take out a home equity (second) loan on their home. They purchased their home five years ago for $310,000,

Bob and Jane would like to take out a home equity (second) loan on their home. They purchased their home five years ago for $310,000, and it is valued at $360,000 today. The current balance on their first mortgage is $202,000. The lender offers home equity loans based on a maximum LTV of 80%.

What is the maximum amount they can borrow on a home equity loan?

Multiple Choice

$288,000
$40,000
$158,000
$248,000
$108,000
$86,000

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