So I have a heloc question

[Aaron Millis]

So just based off the title "Home Equity Line Of Credit" I assumed a heloc was a line of credit based off of the amount of equity that you have in your home. When I called a bank about it they said they do 89% LTV of the appraised value of the home. This doesn't make complete sense to me at the moment. I know a heloc is basically a second mortgage but i didn't know you could have more funds available than the amount of equity in your home.

[Nicholas Scatton]

This means they will loan on 89% of the homes appraised value MINUS your current mortgage or any other loans on the property. Say you have a 50k first mortgage on a 100k house. they will effectly lend you 39k on a heloc. making total loan to value 89%.