Another HELOC & Home Equity Loan Question

I've been reading a lot of posts about HELOCS and Home Equity Loans and I'm confused.

How do they determine how much money you are eligible for?

Is it the difference between what the house is worth and how much you still owe on the loan?

For example, if your house is worth $500,000, you paid $450,000 and you took out a loan for $400,000.

Would you be eligible for $100,000?

Do they always assess the house to see how much it is worth?

Re: Another HELOC & Home Equity Loan Question

I am not sure how they figure it out but we put down a huge down payment and they only let us take out a HELOC for $75k...granted I didn't need more but that was the max Citibank would give me.

I think the equity in the home and the amount of time you owned the home are pretty large factors.

Re: Another HELOC & Home Equity Loan Question

It depends on the loan-to-value ratio your bank allows. I think with ours, our mortgage + home equity loan could only add up to 90% of the appraised value.