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Sean and Amy Anderson have a home with an appraised value of $160,000 and a mortgage balance of only $80,000. a) Given that an S&L

Sean and Amy Anderson have a home with an appraised value of $160,000 and a mortgage balance of only $80,000.

a) Given that an S&L is willing to lend money at a loan-to-value ratio of 70 percent, how big a home equity credit line can Sean and Amy obtain?

b) How much, if any, of this line would qualify as tax-deductible interest if their house originally cost $100,000?

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