Equity projections, HELOC borrowing power & loan comparison
| Stage | Mortgage Balance | Equity | Equity % | HELOC (80% LTV) | HELOC (85% LTV) |
|---|---|---|---|---|---|
| Just Purchased (5% down) | $332,500 | $17,500 | 5.0% | $0 | $0 |
| 5 Years In | $287,000 | $63,000 | 18.0% | $0 | $10,500 |
| 10 Years In | $227,500 | $122,500 | 35.0% | $52,500 | $70,000 |
| 20 Years In | $122,500 | $227,500 | 65.0% | $157,500 | $175,000 |
Starting from 5-year ownership scenario, assuming 3% annual home appreciation
| Period | Home Value | Mortgage Balance | Equity | Equity % | LTV |
|---|---|---|---|---|---|
| Year 0 | $350,000 | $287,000 | $63,000 | 18.0% | 82.0% |
| Year 1 | $360,500 | $281,555 | $78,945 | 21.9% | 78.1% |
| Year 2 | $371,315 | $275,745 | $95,570 | 25.7% | 74.3% |
| Year 3 | $382,454 | $269,546 | $112,909 | 29.5% | 70.5% |
| Year 4 | $393,928 | $262,931 | $130,997 | 33.3% | 66.7% |
| Year 5 | $405,746 | $255,874 | $149,872 | 36.9% | 63.1% |
| Year 6 | $417,918 | $248,344 | $169,574 | 40.6% | 59.4% |
| Year 7 | $430,456 | $240,310 | $190,146 | 44.2% | 55.8% |
| Year 8 | $443,370 | $231,738 | $211,632 | 47.7% | 52.3% |
| Year 9 | $456,671 | $222,591 | $234,079 | 51.3% | 48.7% |
| Year 10 | $470,371 | $212,832 | $257,538 | 54.8% | 45.2% |