Finance
A Louisiana homeowner applies for a home equity line of credit (HELOC). The lender will typically base the available credit on:
AThe original purchase price minus the original loan balance
BThe current appraised value of the home minus the outstanding mortgage balance, up to a maximum LTV✓ Correct
CThe total amount of improvements made to the property
DThe homeowner's annual income only
Explanation
HELOC availability is based on the homeowner's equity — typically the current appraised value minus the outstanding mortgage balance — subject to a maximum combined LTV (often 80–85% of the appraised value). The available credit line represents accessible equity.
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