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Home >> Lending >> Home Equity
Available Equity
How can I find out how much I can borrow on my home?
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 This depends on the lender and state laws you are subject to. If a lender allows no more than an 80% loan to value ratio, a home valued at $100,000 with $65,000 owed against it would have only $15,000 of usable equity ($100,000 x 80% = $80,000; $80,000 - $65,000 - $15,000). If that lender allows a 125% loan to value, the example above would allow for $60,000 in usable equity ($100,000 x 125% - $125,000; $125,000 - $65,000 - $60,000). Most lenders have brochures available to you and calculators on their web sites that allow you to calculate the amount you may borrow from them.
Published on BankingQuestions.com 7/28/06
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