How much equity will my home have after 5 years?
December 11, 2025
Uncategorized
There are a lot of variables, so I'll try to keep it simple.
Let's pretend your house doesn't depreciate or appreciate.
Just pure sweat and payments to get that equity.
Pretend the rate is at today's average from mortgage news daily's website (at the time I started writing this it was at 6.5%)
and let's pretend you just make the minimum payment on a 30 year term.
Here's how it looks:
Mortgage Balance Equity Added in 5 years $800,000 $51,112 $775,000 $49,515 $750,000 $47,918 $725,000 $46,320 $700,000 $44,723 $675,000 $43,126 $650,000 $41,529 $625,000 $39,931 $600,000 $38,334 $575,000 $36,737 $550,000 $35,140 $525,000 $33,542 $500,000 $31,945 $475,000 $30,348 $450,000 $28,751 $425,000 $27,153 $400,000 $25,556 $375,000 $23,959 $350,000 $22,362 $325,000 $20,764 $300,000 $19,167 $275,000 $17,570 $250,000 $15,973 $225,000 $14,375 $200,000 $12,778 $175,000 $11,181 $150,000 $9,584 $125,000 $7,986 $100,000 $6,389
Another way to word it is "how much principal will I pay down in 5 years."
This is called amortization.
Amortization scales linearly, so you might notice that it's all the same percentage of the balance.
6.389%
That's how much of the balance you'll pay down after 5 years: 6.389%