Reported 28 days ago
Homeowners often assume they can access their home's full equity, but various factors limit the actual amount they can borrow. Typically, lenders allow borrowing against up to 80% of the home's appraised value and require that at least 20% equity remain untouched. Additionally, outstanding mortgage balances, inaccurate home valuations, and lender-specific financial criteria play significant roles in determining tappable equity. As a result, homeowners may find the amount they can borrow falls short of their expectations.
Source: YAHOO