Use this template to determine the home equity line of credit for which you qualify. The affordability of the line of credit is a function of two factors. The first factor is the amount of equity that you have available as security for a line of credit. Most banks will not allow loans on the home (one of which is a home equity line of credit) to exceed 80% of the home's appraised value. The other affordability factor is the total expense ratio, which is defined as housing related monthly expenses (principal, interest, property taxes and insurance) plus other monthly debt payments, divided by gross monthly income. Typically, that ratio can not exceed 40%. Ask your bank for their loan-to-value limit and the total expense ratio maximum that they allow. Then plug your assumptions into this template. Home Equity Qualify To view the template, click the worksheet tab labeled Template at the bottom of the screen or press Ctrl-PgDn. With the exception of data entry cells, all cells are protected. Use the Tab key to move from one unprotected cell to the next.Home Equity Line Qualification Enter applicants here Enter date prepared here Assumptions Borrower's Gross Monthly Income Maximum % of Home Value Bank Will Lend Minimum Monthly Payment as a % of Line Bank's Total Expenses (Affordability) Ratio Value of Home First Mortgage Information First Mortgage Balance Monthly Payment Property Taxes (annual) Homeowner's Insurance (annual) Current Monthly Other Consumer Debts Balance Payment Auto Loans Education Loans Personal Installment Loans Home Improvement Loans Other Installment Loans Credit Cards Loans on life insurance Margin loan from broker Other loans Totals Analysis Home Equity Maximum Credit Line (without regard to affordability) Affordable Total Monthly Payments Credit Line You Qualify For