HOUSE PLANNING GUIDE
A home budget you can live with.
Two homes with the same price can ask very different things of your savings and monthly income.
01Start with cash you can actually spend
Purchase cash is the total available for the transaction, not just a down payment. Use “Calculate from details” to add savings and net sale proceeds, then keep back your emergency reserve, moving money, and any other funds you want to protect. The “Using details” status tells you when the calculated amount is active.
02Choose a monthly limit that leaves room
The monthly mortgage budget covers principal, interest, property tax, and homeowners insurance. HOA fees, PMI, utilities, maintenance, and other costs still matter. Review them in the cell breakdown, and reserve for them when calculating a budget from take-home income. A lender’s maximum and your comfortable monthly payment need not be the same.
03A worked example: the down payment is not all the cash
Suppose you have $100,000 available for a purchase and consider a $400,000 home with 20% down. The down payment is $80,000. At an illustrative 3% closing-cost assumption, another $12,000 is needed, for $92,000 before prepaids or other upfront expenses. Only $8,000 remains from the purchase budget. If you had entered all your savings without first holding back a reserve, that cushion could be smaller than it looks.
04Read both sides of the matrix
Columns compare home prices and rows compare down-payment percentages. Envelope shows whichever budget is under more pressure. A cell using 70% of purchase cash but 95% of the monthly limit displays 95%. Switch views or open the cell to see which constraint matters. A larger down payment lowers borrowing but also consumes more cash.
05Try the assumption that worries you
Change the interest rate, property tax, insurance, or maintenance reserve to test a less comfortable case. Check a lender quote and property-specific taxes before relying on a result. Mortgage qualification is an estimate using the income and debt details you supply, not preapproval.
06From a budget to a shortlist
The optional housing report applies your areas, home requirements, and priorities to available evidence. Its top options and alternatives include costs, tradeoffs, source links, and checks that remain unresolved. A home can look promising while still needing a tax, condition, school, or commute check.
Make it your own
Calculation details · CFPB: Determine your down payment
Examples explain the tool; they are not personalized financial advice. Change the assumptions to reflect your situation.