Run the Numbers Before You Fall in Love With a Home
Seven illustrated tools for monthly payment, cash to close, rent vs. buy, price vs. payment, seller concessions and buydowns, extra principal, and cash-out vs. HELOC. Every result is an estimate you can adjust — not a quote, a lock, or an approval. Nothing you enter leaves this browser.
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See the full monthly housing cost.
Principal and interest are only part of the payment. This estimate also adds property taxes, homeowners insurance, mortgage insurance, and HOA dues. Enter your own rate — the default is an example, not a quote.
Michigan tax warning
Under Michigan law, a home’s taxable value is generally capped until a transfer of ownership. In the calendar year after a qualifying transfer, that cap comes off and taxable value is reset to the state equalized value (SEV), which is supposed to approximate 50% of true cash value. An assessor does not automatically set SEV at half of the sale price. The taxes on a listing may reflect the seller’s still-capped taxable value and may not predict what you will pay the following year.
The Principal Residence Exemption (PRE) can exempt a qualifying home from up to 18 mills of school operating taxes. To claim it, file Form 2368 with the local assessor on or before June 1 (for the summer levy) or November 1 (for the winter levy). Confirm millage and taxable value with the local assessor or treasurer.
Sources: Michigan Treasury, Changes in Ownership, Transfer of Ownership Guidelines, michigan.gov/PRE, PRE claim deadlines.
Illustrative estimate, not a loan quote, rate lock, or approval.
Estimated monthly housing cost
- Principal & interest$0.00
- Property taxes$0.00
- Homeowners insurance$0.00
- Mortgage insurance$0.00
- HOA$0.00
Assumptions & limitations
- P&I uses a standard fixed-rate amortization formula. A 0% rate is treated as loan amount ÷ number of months.
- The default 6.5% rate is an example for illustration only; enter your own. No live rates are shown or fetched.
- Default taxes ($5,250 / year) are an example based on 42 mills and SEV ≈ 50% of a $250,000 price. Mills vary by location, and SEV is not automatically half of the sale price.
- Default homeowners insurance is $1,800 / year, an example only.
- Mortgage insurance defaults to $0. Enter your own estimate. Conventional PMI typically applies under 20% down and can often be cancelled around 80% LTV of the original value (CFPB). FHA MIP follows different rules. VA loans have no monthly MI but may include a funding fee. USDA loans include an annual fee. This tool does not invent a PMI rate as a quote.
- Figures are illustrative and are not a loan quote, rate lock, Loan Estimate, or approval.
Illustrative estimate, not a loan quote, rate lock, or approval. Prefer to talk through your numbers? Call, email, or start a secure application — this page never collects sensitive borrower information.
Estimate the cash you may need to close.
This uses the same cash-to-close logic as the Down Payment & Closing Costs page: credits are capped at the lesser of the amount entered, the loan-type concession limit, and closing costs plus prepaids. Credits never reduce the down payment. Gift funds are shown separately.
Illustrative estimate, not a loan quote, rate lock, or approval.
Your cash-to-close estimate
Total cash needed, including earnest money: $0
- Down payment
- $0
- Closing costs
- $0
- Prepaids & escrow
- $0
- Total costs to buy
- $0
- Seller concessions entered
- $0
- Seller concessions applied (allowed)
- $0
- Lender credits applied
- $0
- Other credits applied
- $0
- Total cash needed incl. earnest money
- $0
- Earnest money already paid
- $0
- Estimated cash due at closing
- $0
- Covered by gift funds
- $0
- Your own funds needed after gift
- $0
Open the full Down Payment & Closing Costs guide →
Assumptions & limitations
- Closing costs default to 3% of price and prepaids to 1%, in line with the Down Payment page. CFPB notes closing costs often run about 2–5% of the price, not counting the down payment. Earnest money defaults to $2,500.
- Seller concessions are limited by loan type: Fannie Mae interested-party contributions of 3%, 6%, or 9% of price depending on LTV; FHA up to 6% of the sales price (HUD 4000.1); VA 4% of reasonable value plus normal closing costs. USDA is not modeled here.
- Credits are applied in this order: seller, then lender, then other, and never reduce the down payment. Gift funds reduce your own funds needed, not the total costs to buy.
- Actual cash to close comes from your Loan Estimate and Closing Disclosure.
Illustrative estimate, not a loan quote, rate lock, or approval. Prefer to talk through your numbers? Call, email, or start a secure application — this page never collects sensitive borrower information.
Compare renting and buying over time.
This is an educational cash-flow comparison, not a recommendation. You control every assumption — rent growth, appreciation, maintenance, selling costs, and an investment return on money not used as a down payment and closing costs. Change the inputs and the result can flip.
Illustrative estimate, not a loan quote, rate lock, or approval.
Cumulative comparison
Renting
Rent paid: $0
Invested down payment & closing costs: $0
Illustrative net cost: $0
Buying
Cash spent (upfront + housing + maintenance): $0
Estimated net proceeds after sale: $0
Illustrative net cost: $0
Assumptions & limitations
- Net cost of renting = total rent paid minus investment gains on the down payment and closing costs (grown at the return you enter).
- Net cost of buying = down payment + closing costs + monthly housing costs (P&I, taxes, insurance, MI, HOA) + maintenance, minus estimated net sale proceeds (sale price − remaining loan balance − selling costs).
- Rent grows once a year. The home value grows once a year at the appreciation rate you enter. Maintenance is a percentage of the beginning-of-year value.
- Taxes, insurance, MI, and HOA are held constant in this model. MI is not automatically cancelled.
- Appreciation, rent growth, and investment returns are assumptions you choose, not forecasts. Past performance does not predict future results.
- This comparison ignores some real-world items (federal tax treatment of mortgage interest or property taxes, renters insurance, moving costs, and the non-financial value of owning or renting). It is educational only.
Illustrative estimate, not a loan quote, rate lock, or approval. Prefer to talk through your numbers? Call, email, or start a secure application — this page never collects sensitive borrower information.
Work the numbers in both directions.
Estimate a payment from a price, or estimate a maximum price from a monthly housing budget. This is not an approval amount and does not use debt-to-income ratios. Shop with a payment that feels comfortable, not the highest number a formula can reach.
Michigan tax warning
Under Michigan law, a home’s taxable value is generally capped until a transfer of ownership. In the calendar year after a qualifying transfer, that cap comes off and taxable value is reset to the state equalized value (SEV), which is supposed to approximate 50% of true cash value. An assessor does not automatically set SEV at half of the sale price. The taxes on a listing may reflect the seller’s still-capped taxable value and may not predict what you will pay the following year.
The Principal Residence Exemption (PRE) can exempt a qualifying home from up to 18 mills of school operating taxes. To claim it, file Form 2368 with the local assessor on or before June 1 (for the summer levy) or November 1 (for the winter levy). Confirm millage and taxable value with the local assessor or treasurer.
Sources: Michigan Treasury, Changes in Ownership, Transfer of Ownership Guidelines, michigan.gov/PRE, PRE claim deadlines.
Illustrative estimate, not a loan quote, rate lock, or approval.
Estimated housing cost
Full estimated monthly housing cost: $0.00
- Principal & interest$0.00
- Property taxes$0.00
- Homeowners insurance$0.00
- Mortgage insurance$0.00
- HOA$0.00
Payments across a price range
Nearby prices around the estimate above. These are not approval amounts.
| Price | P&I | Full monthly housing cost |
|---|
Assumptions & limitations
- Taxes are modeled from millage and SEV ≈ 50% of price, so they scale when the price changes. Insurance and HOA are fixed dollar amounts. Mortgage insurance can be a fixed monthly dollar amount or a percentage of the loan.
- The default 6.5% rate and 42-mill tax rate are examples for illustration only.
- The maximum price is the highest price at which the estimated housing cost stays within the budget you entered, given these assumptions. It is not a lender approval, a DTI decision, or a recommendation to spend that amount.
Illustrative estimate, not a loan quote, rate lock, or approval. Prefer to talk through your numbers? Call, email, or start a secure application — this page never collects sensitive borrower information.
Compare how the same dollars might be used.
Look at a credit toward closing costs, a permanent buydown (you enter the points cost and the rate reduction — this site never invents pricing), a temporary 2-1 or 1-0 buydown (the subsidy is computed from the note-rate payment), and a price reduction of the same dollar amount. Michigan Realtors can also use the fuller seller concessions vs. price reductions guide, the mortgage rate buydowns guide, and a guide to two ways to structure a home purchase.
Illustrative estimate, not a loan quote, rate lock, or approval.
Side-by-side comparison
| Option | Starting P&I | Upfront cost / credit | Net vs. base over horizon | Break-even |
|---|---|---|---|---|
| A. Credit to closing costs | $0.00 | $0 | — | — |
| B. Permanent buydown | $0.00 | $0 | $0 | — |
| C. Temporary buydown | $0.00 in year 1 | Subsidy $0.00 | $0 | — |
| D. Price reduction | $0.00 | New price $0 | $0 | n/a |
Concession limits by loan type
- Conventional (Fannie Mae): interested-party contributions are generally limited to 9% of the sale price when LTV is 75% or less, 6% when LTV is 75.01–90%, and 3% when LTV is over 90%. Fannie Mae Selling Guide B3-4.1-02.
- FHA: interested-party contributions are generally limited to 6% of the sales price. HUD Handbook 4000.1.
- VA: seller concessions are generally limited to 4% of the home’s reasonable value; paying the buyer’s normal closing costs does not count toward that 4%. VA funding fee and closing costs.
- USDA: a specific concession cap is not modeled here; ask Shane for the current rule on a USDA guaranteed loan. USDA guaranteed loan program.
Lender and program rules apply and can vary with occupancy, product, and loan-to-value. Credits generally cannot exceed actual closing costs and cannot be used as the down payment.
Assumptions & limitations
- Permanent buydown pricing is entered by you (cost and rate reduction). This page never invents points pricing.
- A temporary 2-1 or 1-0 buydown subsidy is the sum of the monthly differences between the note-rate P&I and the temporary P&I, with those temporary payments computed at the reduced rate on the original loan amount and term. The loan still amortizes at the note rate in real-world documents; this illustration uses the common payment-difference method to size the fund.
- A price reduction keeps the same down-payment percentage, so the loan amount falls with the price.
- Break-even for a permanent buydown is the number of months of payment savings needed to recover the cost you entered. Temporary-buydown break-even is when cumulative payment savings recover the computed subsidy.
- Option A does not change the monthly P&I; it only reduces cash to close, subject to caps.
Illustrative estimate, not a loan quote, rate lock, or approval. Prefer to talk through your numbers? Call, email, or start a secure application — this page never collects sensitive borrower information.
See how extra principal can change the payoff.
Model a monthly extra payment, an annual lump sum, a one-time extra payment, or all three. You’ll see a new payoff date, months saved, interest saved, a yearly summary with expandable months, plus a CSV download and a printable view.
Illustrative estimate, not a loan quote, rate lock, or approval.
Payoff summary
Scheduled P&I: $0.00
Assumptions & limitations
- The schedule uses standard monthly amortization. Extra amounts are applied to principal after the scheduled interest is calculated for that month, and the loan ends when the balance reaches zero.
- Payoff dates are illustrated from the first of the current month. Your actual first-payment date and your servicer’s payoff quote control the real calendar.
- Read your note for prepayment terms. This is not a payoff statement.
Illustrative estimate, not a loan quote, rate lock, or approval. Prefer to talk through your numbers? Call, email, or start a secure application — this page never collects sensitive borrower information.
An educational look at two ways to use equity.
A cash-out refinance replaces your current mortgage with a new, larger first mortgage. A HELOC is typically a separate, often variable-rate line of credit with a draw period and a repayment period. This comparison is educational and is not a recommendation. Combined loan-to-value (CLTV) limits vary by lender. Closing costs and tax treatment differ; consult a tax advisor. Some move-up buyers also look at a HELOC on a departing residence when exploring whether to buy before they sell. To start with an estimated value, see What’s your home worth today?
Illustrative estimate, not a loan quote, rate lock, or approval.
Illustrative payments and cost
Cash-out refinance
New loan: $0
New P&I: $0.00
CLTV: 0%
Closing costs: $0
Cash paid over the horizon: $0
Balance remaining after the horizon: $0
Keep the current loan + HELOC
HELOC interest-only (draw, fully drawn): $0.00
Combined payment during draw: $0.00
HELOC amortizing payment (repay): $0.00
Combined payment in repayment: $0.00
CLTV: 0%
Cash paid over the horizon: $0
First-mortgage balance left: $0 HELOC balance left: $0
What to keep in mind
- HELOC rates are typically variable and can increase after you close, which changes the payment. CFPB: What is a HELOC? and the CFPB HELOC brochure explain draw periods, repayment periods, and the risk of rate changes.
- Combined loan-to-value limits vary by lender, occupancy, and product. This tool shows the CLTV implied by your numbers; it does not decide eligibility.
- Fannie Mae’s cash-out refinance guidelines include seasoning and ownership rules (for example, an existing first mortgage generally must be at least 12 months old, and at least one borrower generally must have been on title for at least six months, with listed exceptions). Fannie Mae Selling Guide B2-1.3-03.
- Closing costs on a refinance are often higher than the cost to open a HELOC, but every loan is different. Ask for a Loan Estimate before you compare real offers.
- Whether interest is deductible depends on how the funds are used and on current tax law. This is not tax advice; consult a qualified tax advisor.
Assumptions & limitations
- The cash-out loan amount is the current balance plus cash needed, plus closing costs if you choose to finance them.
- The HELOC is modeled as fully drawn on day one, interest-only during the draw period, then fully amortizing over the repayment period you enter, at a constant illustrative rate. Actual HELOC rates often vary, and you may draw less than the full line.
- “Cash paid over the horizon” is the sum of payments (and any unfinanced closing costs) during the years you chose. A remaining balance at the end of the horizon is shown separately; it is still owed.
- Default rates are examples for illustration only. This is not a recommendation of either option.
Illustrative estimate, not a loan quote, rate lock, or approval. Prefer to talk through your numbers? Call, email, or start a secure application — this page never collects sensitive borrower information.
Calculator questions, answered.
Have a question that isn’t here? Shane is happy to walk through your numbers.
Ask Shane a question →How is a monthly mortgage payment calculated?
Why might my Michigan property taxes be higher than the seller's bill?
What is included in cash to close?
Is the rent vs. buy calculator telling me whether I should buy?
How do seller concessions and rate buydowns work?
What happens if I pay extra principal?
What's the difference between a cash-out refinance and a HELOC?
Are these calculators a loan quote or an approval?
Go deeper.
Get Preapproved
What lenders review, what to gather, and a Mortgage-Ready Checklist.
Get ready → HomebuyersDown Payment & Closing Costs
What each loan type requires, plus the same cash-to-close math used here.
Estimate your cash → HomebuyersMortgage Programs
Ten program guides and a side-by-side comparison tool.
Compare programs → HomebuyersFirst-Time Buyer Roadmap
Ten stages from dreaming to closing, including Michigan tax uncapping.
Read the roadmap → For RealtorsListing Support
Financing strategies and an educational worksheet for listing conversations.
Open the resource center →Sources
- CFPB: What is a mortgage payment and what does it include?
- CFPB: When can I remove PMI from my loan?
- CFPB: What is mortgage insurance and how does it work?
- CFPB: Determine your down payment (closing costs typically 2-5%)
- CFPB: Loan Estimate explainer
- CFPB: What is a home equity line of credit (HELOC)?
- CFPB: What You Should Know About Home Equity Lines of Credit (HELOC brochure)
- CFPB: For an adjustable-rate mortgage, what are the index and margin?
- Fannie Mae Selling Guide B3-4.1-02: Interested party contributions
- Fannie Mae Selling Guide B2-1.3-03: Cash-out refinance transactions
- HUD Handbook 4000.1: FHA Single Family Housing Policy Handbook (MIP, interested party contributions)
- VA: Funding fee and closing costs (seller concessions)
- USDA Rural Development: Single Family Housing Guaranteed Loan Program
- Michigan Treasury: Changes in Ownership and Uncapping of Property
- Michigan Treasury / State Tax Commission: Transfer of Ownership Guidelines (uncapping)
- Michigan Treasury: Principal Residence Exemption (michigan.gov/PRE)
- Michigan Treasury: PRE claim requirement and Form 2368 deadlines
- Michigan DIFS: Home insurance
Important: This page is educational and general in nature. Every calculator result is an illustrative estimate and is not a loan offer, rate quote, rate lock, Loan Estimate, approval, or commitment to lend. Default rates, millage, insurance, closing-cost percentages, and other starting values are examples for illustration only; enter your own figures. Actual payments, taxes, insurance, mortgage insurance, and closing costs depend on your credit, loan program, property, and market conditions, and require a personalized review. Property-tax estimates are not a tax bill; confirm with the local assessor or treasurer. Information about HELOCs, refinancing, and taxes is general, not tax or legal advice; consult a qualified tax advisor. Information was last reviewed November 10, 2026. Shane Thomas, Senior Loan Officer | Ease Mortgage, NMLS #444451. Ease Mortgage NMLS #2273319. Licensed in Michigan and Indiana. Equal Housing Opportunity.
Get a Personalized Payment Breakdown.
These tools help you see how the pieces fit. Shane can walk through a breakdown that uses your price, your down payment, and current pricing — without treating an estimate as a quote.
NMLS #444451