Question: Chapter 6 Financial Planning Exercise 7 Home equity line interest Sean and Amy Anderson have a home with an appraised value of $230,000 and a

Chapter 6 Financial Planning Exercise 7 Home equity line interest

Sean and Amy Anderson have a home with an appraised value of $230,000 and a mortgage balance of only $115,000.

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

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

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