HELOC Limit Calculation for Properties > $900K
I was told by a coworker that some banks reduce the portion of your home exceeding $900K by 50% when determining your HELOC limit.
Anyone familiar of what banks do this?
For example:
Home Value: $1,200,000
Mortgage Outstanding: $600,000
HELOC Limit = $900,000 x 0.80 = $720,000 - $600,000 = $120,000 + ($300,000 x 0.50) = $270,000
Anyone familiar of what banks do this?
For example:
Home Value: $1,200,000
Mortgage Outstanding: $600,000
HELOC Limit = $900,000 x 0.80 = $720,000 - $600,000 = $120,000 + ($300,000 x 0.50) = $270,000