Equity projections, HELOC borrowing power & loan comparison
| Stage | Mortgage Balance | Equity | Equity % | HELOC (80% LTV) | HELOC (85% LTV) |
|---|---|---|---|---|---|
| Just Purchased (5% down) | $475,000 | $25,000 | 5.0% | $0 | $0 |
| 5 Years In | $410,000 | $90,000 | 18.0% | $0 | $15,000 |
| 10 Years In | $325,000 | $175,000 | 35.0% | $75,000 | $100,000 |
| 20 Years In | $175,000 | $325,000 | 65.0% | $225,000 | $250,000 |
Starting from 5-year ownership scenario, assuming 3% annual home appreciation
| Period | Home Value | Mortgage Balance | Equity | Equity % | LTV |
|---|---|---|---|---|---|
| Year 0 | $500,000 | $410,000 | $90,000 | 18.0% | 82.0% |
| Year 1 | $515,000 | $402,221 | $112,779 | 21.9% | 78.1% |
| Year 2 | $530,450 | $393,921 | $136,529 | 25.7% | 74.3% |
| Year 3 | $546,364 | $385,065 | $161,298 | 29.5% | 70.5% |
| Year 4 | $562,754 | $375,616 | $187,138 | 33.3% | 66.7% |
| Year 5 | $579,637 | $365,534 | $214,103 | 36.9% | 63.1% |
| Year 6 | $597,026 | $354,777 | $242,249 | 40.6% | 59.4% |
| Year 7 | $614,937 | $343,300 | $271,637 | 44.2% | 55.8% |
| Year 8 | $633,385 | $331,054 | $302,331 | 47.7% | 52.3% |
| Year 9 | $652,387 | $317,988 | $334,399 | 51.3% | 48.7% |
| Year 10 | $671,958 | $304,046 | $367,912 | 54.8% | 45.2% |