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A married couple would like to examine the potential of using their home equity to borrow funds in order to remodel their kitchen at a cost of $17,000. The couple purchased the home 3 years ago for its market value of $135,000. The interest rate on their 30-year fixed-rate mortgage is 4.25% and they were able to put down a 5% down payment towards the purchase. The market value of the home has grown at 2.5% per year and the current balance owed on the mortgage is $121,478. If the local Credit Union is offering to lend the couple up to 80% of their home equity in the form of a home equity loan to remodel their kitchen, will they be able to borrow the money necessary to complete the project this third year?

User Athiththan
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Answer:

hope it helps :) <3

Explanation:

A married couple would like to examine the potential of using their home equity to-example-1
User TimmyD
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