Equity projections, HELOC borrowing power & loan comparison
| Stage | Mortgage Balance | Equity | Equity % | HELOC (80% LTV) | HELOC (85% LTV) |
|---|---|---|---|---|---|
| Just Purchased (5% down) | $570,000 | $30,000 | 5.0% | $0 | $0 |
| 5 Years In | $492,000 | $108,000 | 18.0% | $0 | $18,000 |
| 10 Years In | $390,000 | $210,000 | 35.0% | $90,000 | $120,000 |
| 20 Years In | $210,000 | $390,000 | 65.0% | $270,000 | $300,000 |
Starting from 5-year ownership scenario, assuming 3% annual home appreciation
| Period | Home Value | Mortgage Balance | Equity | Equity % | LTV |
|---|---|---|---|---|---|
| Year 0 | $600,000 | $492,000 | $108,000 | 18.0% | 82.0% |
| Year 1 | $618,000 | $482,665 | $135,335 | 21.9% | 78.1% |
| Year 2 | $636,540 | $472,705 | $163,835 | 25.7% | 74.3% |
| Year 3 | $655,636 | $462,078 | $193,558 | 29.5% | 70.5% |
| Year 4 | $675,305 | $450,739 | $224,566 | 33.3% | 66.7% |
| Year 5 | $695,564 | $438,641 | $256,923 | 36.9% | 63.1% |
| Year 6 | $716,431 | $425,733 | $290,699 | 40.6% | 59.4% |
| Year 7 | $737,924 | $411,960 | $325,964 | 44.2% | 55.8% |
| Year 8 | $760,062 | $397,265 | $362,797 | 47.7% | 52.3% |
| Year 9 | $782,864 | $381,585 | $401,279 | 51.3% | 48.7% |
| Year 10 | $806,350 | $364,856 | $441,494 | 54.8% | 45.2% |