When applying for a Home Equity Line of Credit HELOC what is the loan amount based upon?

When applying for a Home Equity Line of Credit HELOC what is the loan amount based upon?

Ron Goodlin (Mortgage Banker and Broker, The Goodlin Group) gives expert video advice on: What is a Home Equity Line of Credit HELOC?; What is a negative amortization loan and is it a good way to lower my monthly payments?; How do I apply for a Home Equity Line of Credit HELOC? and more...

The second mortgage's rates really come down to three things. One is what your credit score is. Two is the amount of loan that you're taking out. Three; what is called the combined Loan to Value. Believe it or not you get a better price if they're able to lend you more money. The mindset there is that at some point in time they know you're going to tap into that money. Therefore, they want to give you a little bit more up front.