To find their equity in the house after 5 years, we need to find the remaining balance on the mortgage after 5 years of making monthly payments.
The mortgage is for $150,000, and the down payment was $10,000, so the initial balance on the mortgage is $140,000.
Using an amortization calculator, we can find that the monthly payment required to pay off the mortgage over 30 years at 6% interest is $899.33.
After 5 years, the Taylors will have made 60 monthly payments of $899.33, for a total of $53,959.80. Using an amortization calculator again, we can find that the remaining balance on the mortgage after 5 years is $106,040.20.
Therefore, their equity in the house after 5 years is:
$150,000 (original value of the house) - $106,040.20 (remaining balance on the mortgage) = $43,959.80
To find their equity after 10 years and 20 years, we can use the same process. After 10 years, the remaining balance on the mortgage will be $80,159.35, so their equity will be:
$150,000 - $80,159.35 = $69,840.65
After 20 years, the remaining balance on the mortgage will be $27,633.83, so their equity will be:
$150,000 - $27,633.83 = $122,366.17
Therefore, their equity after 5 years is $43,959.80, after 10 years is $69,840.65, and after 20 years is $122,366.17.