Ramon owns a home that was appraised for $132,600. Ramon’s credit union is willing to
loan an amount up to 70% of the appraised value of a home. Based on this information,
what is the maximum potential amount of credit that’s available to Ramon for a home
equity loan?
132,600 * 0.7 = ?
132600 x .70 = 92820
To find the maximum potential amount of credit available to Ramon for a home equity loan, we need to calculate 70% of the appraised value of the home.
Step 1: Convert the percentage to a decimal.
70% is equivalent to 0.70 (dividing by 100).
Step 2: Multiply the decimal by the appraised value of the home.
0.70 * $132,600 = $92,820
Therefore, the maximum potential amount of credit available to Ramon for a home equity loan is $92,820.