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Home Buying Strategy Simulator

Home Buying Strategy Simulator

Unlock the true potential of your home-buying budget with our Home Buying Strategy Simulator. Unlike basic calculators that provide a static monthly payment, this tool allows you to experiment with the financial levers that truly drive affordability such as weighing the long-term savings of buying down interest rates versus a larger down payment, to factoring in 'house hacking' income from a long or short term rental unit.

By customizing localized variables like property tax percentages and maintenance funds, you can visualize exactly how creative financing strategies impact your bottom line. Whether you are maximizing equity or prioritizing cash flow, this simulator reveals how shifting just a few key numbers can transform a property from financially out-of-reach to a comfortable investment.

Let's get started!

We'll start by entering some key information about a home you're interested in and then you can try different scenarios to see how adjusting variables changes your affordability.

Standard Home Information

Scenario 1:
Scenario 2: + Add New Scenario
Scenario 3: + Add New Scenario
(Enter an amount or calculate by percent of Home Sale Price: 10%, 15%, 20%, 25%)
(Enter an amount or calculate by percent of Home Sale Price: 10%, 15%, 20%, 25%)
(Enter an amount or calculate by percent of Home Sale Price: 10%, 15%, 20%, 25%)
Enter a custom amount, or calculate from home sale price
Enter a custom amount, or calculate from home sale price
Enter a custom amount, or calculate from home sale price
Enter a custom amount, or calculate from home sale price
Enter a custom amount, or calculate from home sale price
Enter a custom amount, or calculate from home sale price

"Hidden" Monthly Costs

(A rule of thumb is 1% of home value/year for older homes, 0.5% for new builds)
(A rule of thumb is 1% of home value/year for older homes, 0.5% for new builds)
(A rule of thumb is 1% of home value/year for older homes, 0.5% for new builds)
(Default to 0.5% if putting <20% down. If >20% down, you can leave it 0%)
(Default to 0.5% if putting <20% down. If >20% down, you can leave it 0%)
(Default to 0.5% if putting <20% down. If >20% down, you can leave it 0%)

Point Buying

This is a popular strategy in the current market. You pay an upfront fee, points, to permanently lower your interest rate.

Your home buying results will appear here.

Fill out the form above with the necessary information and then click the Calculate button to see your results.
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Start managing your finances today

Calculator Assumptions:

  • Standard Amortization: The tool assumes a standard fixed-rate mortgage. It does not account for Adjustable Rate Mortgages (ARMs), interest-only periods, or balloon payments.
  • Static Tax & Insurance Rates: Property tax and insurance costs are calculated as a fixed percentage of the purchase price. In reality, these costs can fluctuate annually based on municipal reassessments and insurance market volatility.
  • 100% Rental Occupancy: Any "Rental Income" entered assumes the unit is rented 12 months a year with no vacancies. It does not automatically deduct for property management fees or vacancy periods.
  • Cash-Based Closing: The "Cash to Close" estimate assumes the user has the liquidity to cover the down payment and closing costs upfront. It does not account for contingent sales (needing to sell a current home first) or bridge loans.
  • Perfect Maintenance Scheduling: The maintenance fund variable assumes expenses are spread evenly over time (e.g., saving $300/month). It does not account for immediate, large capital expenditures (like a new roof) occurring in the first year of ownership.

Calculator Limitations:

  • No Tax Deduction Logic: This tool calculates cash flow, not taxable income. It does not calculate the potential benefits of the Mortgage Interest Deduction, State and Local Tax (SALT) deductions, or depreciation on rental portions of the home.
  • Debt-to-Income (DTI) Blindness: The calculator may show a monthly payment that fits your personal budget, but it does not tell you if a lender will approve the loan based on your Debt-to-Income ratio.
  • Escrow Shortages: Mortgage servicers conduct annual escrow analyses. If taxes or insurance rise, your monthly payment will increase to cover the difference. This tool provides a snapshot of today's costs, not future inflation.
  • Investment Opportunity Cost: When simulating a larger down payment, the calculator shows the monthly savings but does not calculate the "opportunity cost" of not having that cash invested in the stock market (e.g., the potential 8-10% return you might miss out on).
This tool is designed for educational and simulation purposes only. The figures provided are estimates based on user inputs and general market assumptions. They do not constitute a loan offer, financial advice, or a guarantee of interest rates. Actual payments and qualification criteria should be verified with a licensed mortgage professional and tax advisor.