We will bill you monthly for the interest only on the amount borrowed, and best of all, the interest on the line of credit may be tax deductible. The amount of lendable equity in your home and your current income determine the amount of credit you can obtain. Use this formula to determine the amount of your lendable equity. Start with the appraised value of your home. Subtract the balance remaining on your mortgage loan.
Result represents amount of lendable equity available.
The decision to use the equity in your home is an important one, which should be discussed with your banker and tax advisor. Generally speaking, if you have equity in your home and need to borrow money, a home equity line of credit is an excellent alternative to high interest rate consumer loans. Under the existing tax laws, it may be the best borrowing option available.