line of credit

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dragon007
Member
@dragon007
Join Date: 2006
Post Count: 10
March 19, 2007 - 8:32 am
this might be a silly question but here goes…
example – if my house was worth $260,000 and i owe $225,000 is a line of credit 80% of the home (260000) or 80% of $35000
i am not sure i fully understand any help would be great
thanx
byronent
Participant
@byronent
Join Date: 2007
Post Count: 9
March 19, 2007 - 10:52 am
If you took a Line Of Credit over your property and they offered you 80% loan to value ratio.
So based on your property $260k the Line of Credit of 80% would total $208k.
From what you said, you already owe more than that so I don’t think you would have much luck obtaining a line of credit.
You would have to either increase the value of your home to be able to receive further funds, or sell it.
Just my opinion by the way.
Mortgage Hunter
Participant
@mortgage-hunter
Join Date: 2003
Post Count: 3,781
March 19, 2007 - 11:07 am
Originally posted by dragon007:
this might be a silly question but here goes…
example – if my house was worth $260,000 and i owe $225,000 is a line of credit 80% of the home (260000) or 80% of $35000
i am not sure i fully understand any help would be great
thanx
It is 80% of the value less what you owe.
Unless you pay LMI in which case you can go to 90 or 95%.
Simon Macks
Residential and Commercial Finance Broker
[email protected]
0425 228 985
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.