Mary and Marty are interested in obtaining a home equity loan. They purchased their house five years ago for $139,000, and it now has a market value of $181,473. Originally, Mary and Marty paid $33,533 down on the house and took out a $105,467 mortgage. The current balance on their mortgage is $86,876. The bank uses 60% of equity in determining the credit limit. What will their credit limit be if the bank bases their credit limit on equity invested and will loan them 60% of the equity?
