Form HEDC-1003 . Page 1 of 12 . Truth-in-Disclosure Series

Independent Disclosure

SECTION A · Statement of Equity Position

How much equity do you have, what can it do, and how fast is it growing?

An independent home equity disclosure register. Twelve calculators and reference schedules, written like the paperwork your closing agent uses, without the closing agent's sales bias. Enter your numbers below and see your full equity position, not a single number routed to a HELOC application.

calculators & schedules

§A-§L

lettered sections

lender lead-gen forms

SECTION A . EQUITY POSITION DISCLOSURE

Borrower Equity Worksheet

Form HEDC-A / 1003.01

Sheet 1 of 1

Part 1 . Subject property

Appraised market value (line 1)

Recent appraisal, county record, or comparable-sale estimate.

Primary mortgage balance (line 2)

Current principal balance on first mortgage, per servicer statement.

Other liens / existing HELOC (line 3, optional)

Combined balance of any second mortgage, existing HELOC, or other recorded liens.

Lines 1 through 3 mirror the property-and-liens block of a Closing Disclosure. Figures are estimates only; lenders verify via title search and order their own appraisal.

Part 2 . Calculated equity disclosure

Line 4 . Total equity (line 1 minus lines 2 + 3)USD

$170,000

37.8% of appraised value= owner's share of property

Line 5 . LTV (1st lien)

62.2%

Line 6 . CLTV (all liens)

62.2%

Line 7 . Room to 80% CLTV

$80,000

Line 8 . Room to 85% CLTV

$102,500

Line 9 . Borrower position on LTV scale

LTV 62.2%

0%60% best80% PMI90% cap100%

Line 10 . Position assessment

Standard band

HELOC and HE loan available at competitive rates.

SECTION A.2 · Interpretation of LTV Bands

What your LTV figure means

Lenders translate your LTV into a band. The band determines product access, rate tier, and whether PMI continues to apply. The reference register below mirrors the ranges most underwriters use.

Line	LTV range	Band	Underwriter note
01	Below 60%	Equity-rich	Best rates, all products available.
02	60-75%	Standard	HELOC and HE loan at competitive rates.
03	75-80%	Adequate	Approaching PMI removal threshold.
04	80-85%	Restricted	PMI applies; some lenders only.
05	85-90%	Limited	Few lenders, premium rates.
06	Above 90%	Closed	Most equity products unavailable.

SECTION A.3 · Method of Calculation

How home equity is calculated

Three inputs and a subtraction. The arithmetic is simple; sourcing accurate inputs is the work.

Find market value

Use the most recent appraisal, county assessor record, comparable-sale estimate, or automated valuation model (Zillow, Redfin, Realtor). For borrowing purposes, the lender will order their own appraisal; your number is a working estimate.

Pull mortgage balance

Look at the most recent monthly servicer statement, your servicer's web portal, or your last billing notice. Use the principal balance figure, not the original loan amount. Include any escrow only if specifically asked.

Add other liens

Any second mortgage, existing HELOC drawn balance, mechanic's lien, or tax lien recorded against the property is part of total secured debt. Exclude unsecured debt (credit cards, personal loans). The CLTV calculator handles this directly.

SECTION A.4 · National Equity Snapshot, Q3 2025

Where the average homeowner stands

Reference figures for context. Your individual position will vary materially by state, tenure, and original purchase price.

$302,000

Average equity per mortgaged home

Source: ICE / CoreLogic, 2025

46%

Mortgaged homes that are equity-rich (LTV below 50%)

Source: ICE / CoreLogic, 2025

$17.1T

Total US home equity, Q3 2025

Source: ICE / CoreLogic, 2025

SECTIONS B - L · Disclosure Index

Continue to the next section

Each section is a standalone disclosure. Open whichever applies to your question.

SECTION Bv

LTV Ratio Calculator

Standalone loan-to-value worksheet, with band reference chart and lender thresholds for conventional, FHA, VA, HELOC, and HE loan.

SECTION Cv

Combined LTV (CLTV) Calculator

Underwriter view: total recorded liens against appraised value. The figure that decides HELOC borrowing room.

SECTION Dv

PMI Removal Timeline

Projects the month and year you reach the 80% borrower-request threshold and the 78% Homeowners Protection Act automatic cancellation.

SECTION Ev

Equity Growth Projection

Combines amortization paydown with appreciation. Year-by-year table to year 20 with extra-payment scenarios.

SECTION Fv

Equity by State

All-50 benchmark register: average equity, year-over-year change, equity-rich percentage, sortable by metric.

SECTION Gv

HELOC vs Home Equity Loan

Side-by-side product disclosure: variable revolving line vs fixed lump-sum loan, with five real-world use cases.

SECTION Hv

Rate Sheet (April 2026)

Independent rate roundup, prime + margin construction, and rate-tier table by FICO band. No lender names paired with rates.

SECTION Iv

Qualification Schedule

Threshold checklist: credit score floor, DTI ceiling, equity minimum, employment documentation, payment history.

SECTION Jv

Eligible Uses Schedule

Eight smart uses for home equity, four uses to avoid, with the TCJA tax-deductibility caveat applied honestly.

SECTION Kv

Risk Disclosures

Foreclosure exposure, variable-rate shock, draw-to-repayment payment shock, negative equity scenario calculator.

SECTION Lv

Build Equity Faster

Eight strategies: extra principal, biweekly conversion, refinance to shorter term, value-adding renovations, PMI redirect.

SCHEDULES S-I to S-III · Borrower-Scenario Register

If your situation has a name, find it here

Fifteen borrower-scenario schedules. Each is a focused disclosure for a specific reason for tapping equity. Open the one that names what you actually face.

S-I

By purpose

S-I.01Home Renovation

Phase-draw advantage; the use case where HELOC interest can be tax-deductible under TCJA.

S-I.02Debt Consolidation

Replace 21% credit-card APR with sub-10% equity rate; behavioral risks documented.

S-I.03College Tuition

HELOC vs Parent PLUS at 8.94%: cost comparison and protections trade-off.

S-I.04Emergency Fund Backup

The freeze risk every undrawn-HELOC contingency strategy must price in.

S-I.05Second Home Purchase

Down payment from equity; the TCJA-era tax surprise most buyers miss.

S-I.06Investment Property

Interest-tracing rules and 2026 OBBBA changes for real-estate investors.

S-II

By borrower situation

S-II.01Sub-680 Credit

Minimum scores by lender tier and three realistic paths if score is below 620.

S-II.02Self-Employed

Full-doc, bank-statement, and asset-depletion underwriting paths.

S-II.03While Unemployed

What counts as qualifying income when W-2 wages have stopped.

S-II.04Approaching Retirement

Why applying before income shifts to fixed sources is materially easier.

S-II.05Seniors (62+)

Neutral HELOC vs reverse mortgage comparison without the sales bias.

S-II.06Divorce Buyout

Preserve a low first-mortgage rate while funding the equity buyout.

S-III

Specialty schedules

S-III.01Rental Property

Landlord-specific uses and Schedule E deductibility.

S-III.02Refinance Student Loans

When HELOC refinancing helps and when federal protections matter more.

S-III.03HELOC vs 401(k) Loan

Cost, risk, and the QPLO rule most comparisons get wrong.

SECTION M · Borrower Questions of Record

Frequently asked questions

Six standing questions every equity calculator gets. Plain-English answers, no upsell.

Q01How do I calculate my home equity?v

Equity is your home's current market value minus all secured liens (primary mortgage plus any HELOC, second mortgage, or other recorded liens). On a $450,000 home with a $280,000 mortgage and no other liens, equity is $170,000, or 37.8 percent of value.

Q02What is a good LTV ratio for a home equity loan?v

Below 80 percent LTV is the standard threshold for full product access and competitive rates. Below 60 percent is equity-rich and qualifies for the best terms. Above 90 percent LTV, most equity products become unavailable.

Q03What is the difference between LTV and CLTV?v

LTV uses only the primary mortgage divided by home value. CLTV adds all secured liens including HELOCs and second mortgages. Lenders evaluate CLTV when underwriting new equity products.

Q04When can I cancel PMI?v

Two paths: borrower-requested at 80 percent LTV (subject to good payment history and possible appraisal), or automatic at 78 percent LTV based on the original purchase price under the Homeowners Protection Act of 1998.

Q05How fast does home equity build?v

Through two engines: principal paydown (front-loaded with interest in early years) and home appreciation (historical national average 3 to 5 percent annually). Extra principal payments accelerate the timeline materially.

Q06How much equity do I need to borrow?v

Most lenders require at least 15 to 20 percent equity, meaning a CLTV of 80 to 85 percent or lower after the new loan is applied. Some credit unions go to 90 percent CLTV at higher rates. Specialty lenders rarely allow 95 to 100 percent at premium pricing.

SECTION N · Cross-Reference Register

Related disclosure registers

Sister register

HELOC payment calculator

For interest-only draw period payments, repayment-period payment shock modelling, and rate-change stress tests. Sister site, same independent posture.

Purchase-side register

Mortgage pre-approval calculator

For new-purchase pre-approval estimation, DTI checks, and conventional / FHA / VA qualification thresholds.