Reported 6 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