Equity projections, HELOC borrowing power & loan comparison
| Stage | Mortgage Balance | Equity | Equity % | HELOC (80% LTV) | HELOC (85% LTV) |
|---|---|---|---|---|---|
| Just Purchased (5% down) | $427,500 | $22,500 | 5.0% | $0 | $0 |
| 5 Years In | $369,000 | $81,000 | 18.0% | $0 | $13,500 |
| 10 Years In | $292,500 | $157,500 | 35.0% | $67,500 | $90,000 |
| 20 Years In | $157,500 | $292,500 | 65.0% | $202,500 | $225,000 |
Starting from 5-year ownership scenario, assuming 3% annual home appreciation
| Period | Home Value | Mortgage Balance | Equity | Equity % | LTV |
|---|---|---|---|---|---|
| Year 0 | $450,000 | $369,000 | $81,000 | 18.0% | 82.0% |
| Year 1 | $463,500 | $361,999 | $101,501 | 21.9% | 78.1% |
| Year 2 | $477,405 | $354,529 | $122,876 | 25.7% | 74.3% |
| Year 3 | $491,727 | $346,559 | $145,169 | 29.5% | 70.5% |
| Year 4 | $506,479 | $338,054 | $168,424 | 33.3% | 66.7% |
| Year 5 | $521,673 | $328,981 | $192,692 | 36.9% | 63.1% |
| Year 6 | $537,324 | $319,300 | $218,024 | 40.6% | 59.4% |
| Year 7 | $553,443 | $308,970 | $244,473 | 44.2% | 55.8% |
| Year 8 | $570,047 | $297,948 | $272,098 | 47.7% | 52.3% |
| Year 9 | $587,148 | $286,189 | $300,959 | 51.3% | 48.7% |
| Year 10 | $604,762 | $273,642 | $331,121 | 54.8% | 45.2% |