Equity projections, HELOC borrowing power & loan comparison
| Stage | Mortgage Balance | Equity | Equity % | HELOC (80% LTV) | HELOC (85% LTV) |
|---|---|---|---|---|---|
| Just Purchased (5% down) | $190,000 | $10,000 | 5.0% | $0 | $0 |
| 5 Years In | $164,000 | $36,000 | 18.0% | $0 | $6,000 |
| 10 Years In | $130,000 | $70,000 | 35.0% | $30,000 | $40,000 |
| 20 Years In | $70,000 | $130,000 | 65.0% | $90,000 | $100,000 |
Starting from 5-year ownership scenario, assuming 3% annual home appreciation
| Period | Home Value | Mortgage Balance | Equity | Equity % | LTV |
|---|---|---|---|---|---|
| Year 0 | $200,000 | $164,000 | $36,000 | 18.0% | 82.0% |
| Year 1 | $206,000 | $160,888 | $45,112 | 21.9% | 78.1% |
| Year 2 | $212,180 | $157,568 | $54,612 | 25.7% | 74.3% |
| Year 3 | $218,545 | $154,026 | $64,519 | 29.5% | 70.5% |
| Year 4 | $225,102 | $150,246 | $74,855 | 33.3% | 66.7% |
| Year 5 | $231,855 | $146,214 | $85,641 | 36.9% | 63.1% |
| Year 6 | $238,810 | $141,911 | $96,900 | 40.6% | 59.4% |
| Year 7 | $245,975 | $137,320 | $108,655 | 44.2% | 55.8% |
| Year 8 | $253,354 | $132,422 | $120,932 | 47.7% | 52.3% |
| Year 9 | $260,955 | $127,195 | $133,760 | 51.3% | 48.7% |
| Year 10 | $268,783 | $121,619 | $147,165 | 54.8% | 45.2% |