Equity projections, HELOC borrowing power & loan comparison
| Stage | Mortgage Balance | Equity | Equity % | HELOC (80% LTV) | HELOC (85% LTV) |
|---|---|---|---|---|---|
| Just Purchased (5% down) | $285,000 | $15,000 | 5.0% | $0 | $0 |
| 5 Years In | $246,000 | $54,000 | 18.0% | $0 | $9,000 |
| 10 Years In | $195,000 | $105,000 | 35.0% | $45,000 | $60,000 |
| 20 Years In | $105,000 | $195,000 | 65.0% | $135,000 | $150,000 |
Starting from 5-year ownership scenario, assuming 3% annual home appreciation
| Period | Home Value | Mortgage Balance | Equity | Equity % | LTV |
|---|---|---|---|---|---|
| Year 0 | $300,000 | $246,000 | $54,000 | 18.0% | 82.0% |
| Year 1 | $309,000 | $241,333 | $67,667 | 21.9% | 78.1% |
| Year 2 | $318,270 | $236,353 | $81,917 | 25.7% | 74.3% |
| Year 3 | $327,818 | $231,039 | $96,779 | 29.5% | 70.5% |
| Year 4 | $337,653 | $225,370 | $112,283 | 33.3% | 66.7% |
| Year 5 | $347,782 | $219,321 | $128,462 | 36.9% | 63.1% |
| Year 6 | $358,216 | $212,866 | $145,349 | 40.6% | 59.4% |
| Year 7 | $368,962 | $205,980 | $162,982 | 44.2% | 55.8% |
| Year 8 | $380,031 | $198,632 | $181,399 | 47.7% | 52.3% |
| Year 9 | $391,432 | $190,793 | $200,639 | 51.3% | 48.7% |
| Year 10 | $403,175 | $182,428 | $220,747 | 54.8% | 45.2% |