Finance
A Colorado homeowner with a home worth $450,000 and a mortgage balance of $250,000 wants a HELOC. If the lender allows 85% CLTV, what is the maximum HELOC credit line?
A$117,500
B$132,500✓ Correct
C$200,000
D$382,500
Explanation
Maximum CLTV amount = $450,000 × 85% = $382,500. Maximum HELOC = $382,500 − $250,000 (existing mortgage) = $132,500.
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