Question: What is the normal/max that a lender will lend on a home equity loan if?

(Posted by: eightycoffins on 2009-12-30 17:34:40)

The house appraises for 111, 000. I am looking to add on and other remodel jobs. Oh yeah, forgot to add that DUH house is paid for free and clear! Thanks to every one that was smart enough to assume that is what I meant.

Posted by: Simpson G on 2009-12-30, 17:44:07

The norm for most companies is 75% of the value, assuming you have equity. If you owe nothing on this house, then my main mortgage company would consider giving you up to $83,250. Again, that's only if you are free and clear.

Posted by: Common Sense on 2009-12-30, 17:40:46

80% max...more likely 70%

Posted by: Ryan M on 2009-12-30, 17:42:17

That depends on YOUR EQUITY!!!! DUH!!! If you do not tell us how much equity you have, how on Earth do you expect an answer????????

Posted by: HillClimber on 2009-12-30, 17:51:07

Assuming you qualify, the maximum you can borrow is the maximum % of your equity the lender will allow. If you have 40,000 equity in your 111,000 house, and if the lender says the maximum allowed is 90%, then the maximum loan is 0.90 X 40,000 = 36,000. The lender will only recognize appraisals they conduct and you get to pay for it. The lender can still limit you to a smaller loan. Also, the 90% max figure used was common. No more.

Posted by: Bobali on 2009-12-30, 20:09:42

The appraisal is there to define your equity (appraisal value - mortgage). The bank will lend you more or less 80% of your equity.

Posted by: Tim on 2009-12-31, 10:31:30

Some will go as high as 85% of the appraised value depending on your credit score and where you live.