A few years ago, Simon Powell purchased a home for $230,000. Today, the home is worth $410,000. His remaining mortgage balance is $180,000. Assuming that Simon can borrow up to 70 percent of the market value, what is the maximum amount he can currently borrow against his home?

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Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.