ting...
and
...
>
:
>
>
v
W
JRE
£
>
>
>
>
Values)
$160,000
.......
ue
of
the
home,
the
entire
>450,00C
[Table
2.1]
Loan
to
value
calculation.
(Source:
Professors
Carla
Van
Horne
and
Rosanna
Anderson,
NAIT)
s
160.000
Since
the
example
provided
shows
$160,000
is
less
thon
65%
of
the
val
will
be
revolving.
Lender
Calculation
for
HELOC
Lenders
typically
calculate
these
payments
as
interest
only.
The
interestfate
is
usually
set
at
the
prime
rate
plus
avalue
determined
by
the
financial
institution.
/
Example:
b
where
prime
is
2.25%;
the
outstanding
balance
is
$55,575.96.
The
A
HELOC
has
a
rate
of
prime
plus
1%
lender
would
calculate
the
minimum
payment
as
follows:
Step
1:
(0.0325
*
$55,575.96)
=
$1806.22
Step
2:
$1806.22/365
=
$4.95
Step
3:
$4.95
*
30
=
$148.50
minimum
payment
due
Instalment
Accounts
"
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