MGIC
Buy Now vs. Wait Calculator
Did you know that you can buy a home with less than a 20% down payment?
Waiting to save 20% down can save you money in some areas, but it could cost you money in others. Our calculator can help you determine if buying a home right now might be the better choice for you.
Give us a snapshot of your current financial situation.
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$1,2000
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$1,5000
Did you know your credit is just as important as your savings
for lenders deciding whether or not to approve a loan?
Learn all about credit at
readynest.com
Tell us a little bit about the home you'd like to buy.
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$1,000,000
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$200,000
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Right now, you have a 5% down payment in savings based on your desired home price. Did you know with MGIC mortgage insurance you can buy with as little as 3% down?
buy now vs. the cost to wait
You're ready to buy now! Rather than wait 11.17 years before you buy, it's possible to buy now with as little as 3% down or $9,000. Consider this: if you buy now, after 11.17 years you will have reached $182,880 in home equity. Rent payments build zero equity.
| Buy now | Cost to wait |
|---|---|
| Buy Now with your 66% down payment | 0.00 years to save 20% down payment |
| $126,000 buy now down payment | $126,000 future down payment |
| $0 lost on rent payments if you buy now! | $0 total rent paid while waiting |
| $190,000 home price | $190,000 home price due to appreciation |
| Buy now | Wait 11.17 years | |
|---|---|---|
| Principal and interest | $1,801.39 | $2,109.26 |
| Taxes, HOA, insurance | $500.00 | $692.12 |
| Mortgage insurance | $66.50 | $0.00 |
| Total monthly payment | $2,367.89 | $2,801.38 |
Buy: Low down payment - you may be eligible to buy with MGIC mortgage insurance. You may be eligible to remove the mortgage insurance in 5.08 years, reducing your payment by $66.50.
Wait: In 11.17 years, rent is projected to be $1,800. Rent payments build zero equity.
| Buy now | Wait to buy | |
|---|---|---|
| Savings contributions towards 20% down payment | $0 | $67,000 |
| Total housing payments | $323,608 | $203,386 |
| Home equity position | $182,880 | $83,639 |
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