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