A few years ago Mary purchased a home for $100,000. Today the home is worth $150,000. The remaining balance on the mortgage is $50,000
If Mary can borrow up to 80% of the market value of the equity, the maximum amount she can borrow is
A) $80,000.
B) $70,000.
C) $100,000.
D) $50,000.
Answer: A
Explanation: A) $150,000 - $50,000 = $100,000 × 80% = $80,000
You might also like to view...
Which of the following statements is true if a bond is issued at an amount less than its face value?
A) The bond's stated rate is lower than the prevailing market rate at the time of sale. B) The bond's stated rate is the same as the prevailing market rate at the time of sale. C) The bond's stated rate is higher than the prevailing market rate at the time of sale. D) The bond is not secured by specific assets of the issuer.
A developer can use the Improvement Act of 1911 as amended to raise funds for all of the following purposes, EXCEPT to:
A. purchase land for subdivision. B. provide for drainage. C. construct sewers. D. develop off-site improvements.