Finance

A New York homeowner with a $600,000 home and a $200,000 first mortgage can borrow against the equity through a home equity line of credit (HELOC). The maximum loan amount a lender would consider (at 80% CLTV) is:

A$80,000
B$280,000✓ Correct
C$480,000
D$200,000

Explanation

Max CLTV = $600,000 × 80% = $480,000 total debt. Existing mortgage = $200,000.

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