Equity projections, HELOC borrowing power & loan comparison
| Stage | Mortgage Balance | Equity | Equity % | HELOC (80% LTV) | HELOC (85% LTV) |
|---|---|---|---|---|---|
| Just Purchased (5% down) | $380,000 | $20,000 | 5.0% | $0 | $0 |
| 5 Years In | $328,000 | $72,000 | 18.0% | $0 | $12,000 |
| 10 Years In | $260,000 | $140,000 | 35.0% | $60,000 | $80,000 |
| 20 Years In | $140,000 | $260,000 | 65.0% | $180,000 | $200,000 |
Starting from 5-year ownership scenario, assuming 3% annual home appreciation
| Period | Home Value | Mortgage Balance | Equity | Equity % | LTV |
|---|---|---|---|---|---|
| Year 0 | $400,000 | $328,000 | $72,000 | 18.0% | 82.0% |
| Year 1 | $412,000 | $321,777 | $90,223 | 21.9% | 78.1% |
| Year 2 | $424,360 | $315,137 | $109,223 | 25.7% | 74.3% |
| Year 3 | $437,091 | $308,052 | $129,039 | 29.5% | 70.5% |
| Year 4 | $450,204 | $300,493 | $149,711 | 33.3% | 66.7% |
| Year 5 | $463,710 | $292,427 | $171,282 | 36.9% | 63.1% |
| Year 6 | $477,621 | $283,822 | $193,799 | 40.6% | 59.4% |
| Year 7 | $491,950 | $274,640 | $217,310 | 44.2% | 55.8% |
| Year 8 | $506,708 | $264,843 | $241,865 | 47.7% | 52.3% |
| Year 9 | $521,909 | $254,390 | $267,519 | 51.3% | 48.7% |
| Year 10 | $537,567 | $243,237 | $294,329 | 54.8% | 45.2% |