How Much Money Can I Borrow With A Home Equity Loan?
The answer to this question depends on a variety of factors including your lender’s guidelines, your home’s value and the amount of your first mortgage loan. The Minimum Amount Before we get started with how much you can borrow with a home equity loan, you should know that there is usually a minimum amount that you must borrow. This amount varies by lender but it is usually set at $10,000. There is a lot that is involved on the lender’s side to secure a home equity loan, therefore a minimum loan amount is in place to ensure the loan is a good addition to their portfolio based on the amount of time involved in processing and servicing. Calculating Your Home Equity Loan Amount This is another factor that can vary by lender. Many lenders will not lend you more than the value of your home and most are comfortable in the 80-90% range. This percentage represents the total amount of debt you can have in relation to the value of your home. For instance, let’s assume the lender’s guideline stat
