Equity projections, HELOC borrowing power & loan comparison
| Stage | Mortgage Balance | Equity | Equity % | HELOC (80% LTV) | HELOC (85% LTV) |
|---|---|---|---|---|---|
| Just Purchased (5% down) | $950,000 | $50,000 | 5.0% | $0 | $0 |
| 5 Years In | $820,000 | $180,000 | 18.0% | $0 | $30,000 |
| 10 Years In | $650,000 | $350,000 | 35.0% | $150,000 | $200,000 |
| 20 Years In | $350,000 | $650,000 | 65.0% | $450,000 | $500,000 |
Starting from 5-year ownership scenario, assuming 3% annual home appreciation
| Period | Home Value | Mortgage Balance | Equity | Equity % | LTV |
|---|---|---|---|---|---|
| Year 0 | $1,000,000 | $820,000 | $180,000 | 18.0% | 82.0% |
| Year 1 | $1,030,000 | $804,442 | $225,558 | 21.9% | 78.1% |
| Year 2 | $1,060,900 | $787,842 | $273,058 | 25.7% | 74.3% |
| Year 3 | $1,092,727 | $770,130 | $322,597 | 29.5% | 70.5% |
| Year 4 | $1,125,509 | $751,232 | $374,277 | 33.3% | 66.7% |
| Year 5 | $1,159,274 | $731,069 | $428,205 | 36.9% | 63.1% |
| Year 6 | $1,194,052 | $709,555 | $484,498 | 40.6% | 59.4% |
| Year 7 | $1,229,874 | $686,600 | $543,274 | 44.2% | 55.8% |
| Year 8 | $1,266,770 | $662,108 | $604,662 | 47.7% | 52.3% |
| Year 9 | $1,304,773 | $635,975 | $668,798 | 51.3% | 48.7% |
| Year 10 | $1,343,916 | $608,093 | $735,824 | 54.8% | 45.2% |