Equity projections, HELOC borrowing power & loan comparison
| Stage | Mortgage Balance | Equity | Equity % | HELOC (80% LTV) | HELOC (85% LTV) |
|---|---|---|---|---|---|
| Just Purchased (5% down) | $237,500 | $12,500 | 5.0% | $0 | $0 |
| 5 Years In | $205,000 | $45,000 | 18.0% | $0 | $7,500 |
| 10 Years In | $162,500 | $87,500 | 35.0% | $37,500 | $50,000 |
| 20 Years In | $87,500 | $162,500 | 65.0% | $112,500 | $125,000 |
Starting from 5-year ownership scenario, assuming 3% annual home appreciation
| Period | Home Value | Mortgage Balance | Equity | Equity % | LTV |
|---|---|---|---|---|---|
| Year 0 | $250,000 | $205,000 | $45,000 | 18.0% | 82.0% |
| Year 1 | $257,500 | $201,110 | $56,390 | 21.9% | 78.1% |
| Year 2 | $265,225 | $196,960 | $68,265 | 25.7% | 74.3% |
| Year 3 | $273,182 | $192,533 | $80,649 | 29.5% | 70.5% |
| Year 4 | $281,377 | $187,808 | $93,569 | 33.3% | 66.7% |
| Year 5 | $289,819 | $182,767 | $107,051 | 36.9% | 63.1% |
| Year 6 | $298,513 | $177,389 | $121,124 | 40.6% | 59.4% |
| Year 7 | $307,468 | $171,650 | $135,819 | 44.2% | 55.8% |
| Year 8 | $316,693 | $165,527 | $151,166 | 47.7% | 52.3% |
| Year 9 | $326,193 | $158,994 | $167,199 | 51.3% | 48.7% |
| Year 10 | $335,979 | $152,023 | $183,956 | 54.8% | 45.2% |