Loan amounts were traditionally calculated by lending institutions or knowledgeable realtors in a face-to-face environment. Now, the Internet has enabled borrower's to do this from the comfort of home or office.

Banks determine loan amount for an individual by a percentage of their yearly income to determine housing expense. The usual percentage used by major banks is between 28 to 34 percent. The size of the loan then varies depending on the choice of either a 15 or 30 year loan, current interest rates and financing terms. Recently, due to lower interest rates, borrowers qualified for higher loan amounts allowing them purchase larger homes or refinance an existing loan. Lower interests rates allowed an increased demand for home-equity loans and new home purchases.

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