Credit Limit. Mary and Marty are interested in obtaining a home equity loan. They purchased...
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Credit Limit. Mary and Marty are interested in obtaining a home equity loan. They purchased their house five years ago for $138,000, and it now has a market value of $164,404. Originally, Mary and Marty paid $33,695 down on the house and took out a $104,305 mortgage. The current balance on their mortgage is $77,288. The bank uses 60% of equity in determining the credit limit. What will their credit limit be if the bank bases their credit limit on equity invested and will loan them 60% of the equity? If the bank bases their credit limit on equity invested and will loan them 60% of the equity, their credit limit will be $ (Round to the nearest dollar.)
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