Definitions

Appraised value of your home: This is the current appraised value of your home. If it has been a few years since you purchased your home, it may be worth quite a bit more than your original purchase price.
Mortgages you owe: This is the total of all outstanding mortgages on your home. This should include your first mortgage, second mortgages and any other debt that is secured by your home.
Loan to value ratio: The loan to value ratio is the percent of your home's appraised value that your lender will allow. For example, an 80% loan to value ratio would allow you to have $80,000 in debt secured by a home appraised at $100,000. Remember - the total debt allowed includes all outstanding mortgages plus your new line of credit.