Assume your $200,000 home appreciates in value at a rate of 5% per year. (use annual compounding)
Assume you take out an 80% mortgage (loan to original value) at 6% interest rate for 30 years.
Therefore, you provide 20% or $40,000 equity in the home at the outset of the mortgage.
What is the amount of equity (the then current value of home (current market value) less mortgage outstanding) at the end of the 60th payment?