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The Cost of Waiting: how it works

Compares buying a home today against buying the same home after waiting: the later price applies your appreciation assumption, the later payment applies your rate-change assumption, and buying power shows what today's payment would afford at the later rate.

Step by step

1. The later price grows the current price at your yearly appreciation rate for the months waited.
2. Payments use standard amortization with the assumed down payment percentage.
3. The total cost of waiting combines the larger down payment with the payment difference over the life of the loan.

The math

Monthly P&I = L·r/(1−(1+r)^−n) (public-domain amortization).

Sources

• Standard amortization mathematics (public domain).