Home Equity Line of Credit

[William D.]

What's up BP! I am interested and looking for info about a home equity line of credit, to use for  a down payment on another home. I purchased a condo at 260k, rolled the closing costs in as well, so total is 275k. I currently owe 238k. I also did a full renovation, (top of the line everything, built-in fridge and dishwasher, marble backsplash and countertops blah blah blah). I did not get a formal appraisal but the comps are around 289k-310k (conservatively). Can I get use my home as collateral? Forgive my ignorance, I am new at this. How do I calculate how much equity I have, if any.

[Marian Smith]

Your equity is the value of your property minus what you owe. For a Heloc your value is what the bank says it is, either tax appraisal or what an appraiser you pay $4-500 says...and the appraiser works for the bank. The bank wants you to retain 20% equity, so conservative value of your property times .8 minus what you owe is what they might loan you. Plus they may have to prove that at your income you can pay. Why not call your bank and get a ballpark?