Equity projections, HELOC borrowing power & loan comparison
| Stage | Mortgage Balance | Equity | Equity % | HELOC (80% LTV) | HELOC (85% LTV) |
|---|---|---|---|---|---|
| Just Purchased (5% down) | $712,500 | $37,500 | 5.0% | $0 | $0 |
| 5 Years In | $615,000 | $135,000 | 18.0% | $0 | $22,500 |
| 10 Years In | $487,500 | $262,500 | 35.0% | $112,500 | $150,000 |
| 20 Years In | $262,500 | $487,500 | 65.0% | $337,500 | $375,000 |
Starting from 5-year ownership scenario, assuming 3% annual home appreciation
| Period | Home Value | Mortgage Balance | Equity | Equity % | LTV |
|---|---|---|---|---|---|
| Year 0 | $750,000 | $615,000 | $135,000 | 18.0% | 82.0% |
| Year 1 | $772,500 | $603,331 | $169,169 | 21.9% | 78.1% |
| Year 2 | $795,675 | $590,881 | $204,794 | 25.7% | 74.3% |
| Year 3 | $819,545 | $577,598 | $241,948 | 29.5% | 70.5% |
| Year 4 | $844,132 | $563,424 | $280,707 | 33.3% | 66.7% |
| Year 5 | $869,456 | $548,301 | $321,154 | 36.9% | 63.1% |
| Year 6 | $895,539 | $532,166 | $363,373 | 40.6% | 59.4% |
| Year 7 | $922,405 | $514,950 | $407,456 | 44.2% | 55.8% |
| Year 8 | $950,078 | $496,581 | $453,497 | 47.7% | 52.3% |
| Year 9 | $978,580 | $476,981 | $501,598 | 51.3% | 48.7% |
| Year 10 | $1,007,937 | $456,070 | $551,868 | 54.8% | 45.2% |