Comments on: Episode 162: How Does a HELOC Work? https://www.moneypeach.com/episode-162-how-does-a-heloc-work/ Clear A Path To Financial Freedom. Thu, 22 Apr 2021 23:21:02 +0000 hourly 1 https://wordpress.org/?v=6.4.5 By: Chris Petrie https://www.moneypeach.com/episode-162-how-does-a-heloc-work/#comment-241111 Wed, 31 Mar 2021 23:07:48 +0000 https://www.moneypeach.com/?p=15919#comment-241111 In reply to Paul Varley.

Hi Paul,

You are correct and if I said it differently on the show, my apologies.

To clarify, the HELOC amount lenders will approve is typically between 75% and 90% of the value of your home minus your current mortgage amount. For example, if the lender approves 80% loan-to-value of the home and your home is worth $400,000, then the maximum loan amount is $320,000 minus the amount you currently owe on your mortgage. If your balance is $100,000, then the total credit line for your HELOC would be $220,000.

Thanks again for pointing that out and I apologize for any confusion.

]]> By: Paul Varley https://www.moneypeach.com/episode-162-how-does-a-heloc-work/#comment-240921 Tue, 30 Mar 2021 03:49:32 +0000 https://www.moneypeach.com/?p=15919#comment-240921 Lenders will lend up to 80-90% of the value in your home.

So it would be 90% (or whatever LTV caps the lender has) of the appraised value minus the outstanding liens on the property = amount lendable

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