For the BLOC
Your BLOC must have a credit line of at least $20,000 for the Banker Line of Credit program to work. If you are paying off debts with your BLOC, borrow at the right percentage LTV to payoff your debts and leave open at least $20,000 on your credit line.
Banks and other lenders will extend
you credit based upon a percentage
of the estimated market value of
your home.
That percentage of market value minus the amount you owe
on your first mortgage (plus any
2nd or 3rd mortgages that you may
have) becomes the maximum amount
of credit that lenders will give
you.
Let's say that your home has an
estimated market value of $150,000.
The amount that you still owe on
your first mortgage and any other
liens is $100,000. The maximum amount
you can borrow is calculated as
follows:
Estimated
Market Value: |
$150,000 |
$150,000 |
Percentage
LTV: |
80% |
100% |
Percentage
of Market Value: |
$120,000 |
$150,000 |
Less
Mortgage Debt: |
$100,000 |
$100,000 |
Equals
Total Equity: |
$20,000 |
$50,000 |
|