Question regarding HELOC

[Sooyeon Kwon]

Hello,

Im a newbie in RI. Im still renting but considering purchasing my first home or a multifamily for rental. My question is re: HELOC.
so the percentage of HELOC is generally 80% of the equity on your property if Im understanding correctly. 

So if the value of the property decreases, does that affect the total amount of HELOC as opposed to the amount I would have gotten at a higher purchase price?

Say I bought a property for 80K with 20% down. Then within the year , assuming that the price stays at 80K, if I were to take out HELOC, how much would I get versus if the property value goes down to 70K.

Please guide me on this novice’s RI journey. 
thank you! 

[Allen McGlashing]

@Sooyeon Kwon

The HELOC goes off of the appraised value and once you sign the closing document it doesn't change its like a credit card with a max limit.

I want to touch on how much you can take out though. If you have a $100k house and you put 20% so $20k down you have $20k in equity and owe $80k on the loan. You want to take out a HELOC that's at 80% LTV of let's say the houses now appraised value comes back at $120k. 80% of the $120K is $96k. since you owe $80k on the house they will only lend $96k-$80k= $16k. Minus some closing costs.

Hope this helps GOOD LUCK