Question: Mr and Mrs Napper are interested in funding their children s
Mr. and Mrs. Napper are interested in funding their children's college education by taking out a home equity loan in the amount of $24,000. Eldridge National Bank is willing to extend a loan, using the Nappers’ home as collateral. Their home has been appraised at $110,000, and Eldridge permits a customer to use no more than 70 percent of the appraised value of a home as a borrowing base. The Nappers still owe $60,000 on the first mortgage against their home. Is there enough residual value left in the Nappers’ home to support their loan request? How could the lender help them meet their credit needs?
Relevant QuestionsGreg Lance has just been informed by a finance company that he can access a line of credit 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 ...The Lathrop family needs some extra funds to put their two children through college starting this coming fall and to buy a new computer system for a part-time home business. They are not sure of the current market value of ...Susie Que has asked for a 25-year mortgage to purchase a home at Nag’s Head. The purchase price is $465,000, of which Susie must borrow $395,000 to be repaid in monthly installments. If Susie can get this loan for an APR ...What factors must the regulatory authorities consider when deciding whether to approve or deny a merger?The city of Dryden is served by three banks, which recently reported deposits of $250 million, $200 million, and $45 million, respectively. Calculate the Herfindahl index for the Dryden market area. If the second and third ...
Post your question