Mike purchased his home five years ago for $250,000. its current market value is $275,000 and has a mortgage balance of $195,000. he wants to put in a pool and pay for it with a heloc. if the lender requires a maximum ltv of 80%, what is the most mike will receive from the proceeds of the heloc?

$25,000

Explanation:

Given:

Purchase price of home = $250,000

Market value = $275,000

Mortgage balance = $195,000

Maximum LTV = 80%

Now,

The maximum amount of LTV = LTV × Market value

= 0.80 × $275,000

= $220,000

thus,

The maximum amount of HELOC = $220,000 - Mortgage balance

or

The maximum amount of HELOC = $220,000 - $195,000

or

The maximum amount of HELOC = $25,000

answer: b 56, 250

explanation:

if i need to borrow money for anything, it would be for something like a house or an apartment but, that depend on the situation.

is this good enough?