Greg Lance has just been informed by a finance company that he can access a line of

Question:

Greg Lance has just been informed by a finance company that he can access a of no more than $75,000 based upon the equity value in his home. Lance still owes $180,000 on a first mortgage against his home and $25,000 on a second mortgage against the home, which was incurred last year to repair the roof and driveway. If the appraised value of Lance’s residence is $400,000, what percentage of the home's estimated market value is the lender using to determine Lance’s maximum available Line of Credit
A line of credit (LOC) is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit. A LOC is...