Loan Processor Question:
Download Questions PDF

Tell me what is home equity loan?


Home equity loan, also known as the second mortgage, enables you to borrow money against the value of equity in your home. For example, if the value of the home is $1, 50,000 and you have paid $50,000. The balance owed on your mortgage is $1, 00,000. The amount $50,000 is an equity, which is the difference of the actual value of the home and what you owe to the bank. Based on equity the lender will give you a loan. Usually, the applicant will get 85% of the loan on its equity, considering your income and credit score. In this case, you will get 85% of $50,000, which is $42,500.

Download Loan Processing Interview Questions And Answers PDF

Previous QuestionNext Question
Do you know what are the types of Commercial Banks?Tell me where at in the processing do you usually run into delays, and what steps do you take to avoid them?