Cost of Waiting to Buy

Buy Now vs Wait — Cost of Waiting + Tax & MCC (Fixed Rules)

Buy Now vs Wait — Cost of Waiting

Auto-updates • Fixed SALT & MCC rules

Home price today ($)

Down payment (%)

Rate if you buy now (%)

Rate if you wait (%)

Wait period (months)

Loan term (years)

Annual home appreciation (%)

Monthly rent today ($)

Annual rent inflation (%)

Property tax rate (% of price / yr)

Insurance rate (% of price / yr)

PMI (if LTV>80%) approx. (% of loan / yr)

Tax & MCC (fixed rules)

Filing status

Household income (MAGI) ($)

Standard deduction ($)

Auto-set by status: Single $15,750 • MFJ $31,500 • HOH $23,650

Marginal tax rate (%)

Count PMI as deductible

Count property taxes as deductible (SALT cap fixed at $40,000)

Est. federal tax liability ($)

MCC credit is capped by tax liability (non-refundable).

Fixed rules applied: SALT cap = $40,000. MCC = 15% credit, income ≤ $133,800 and price ≤ $593,363. Mortgage interest deduction is reduced by the MCC credit claimed.

How we calculate the cost of waiting

Cost of Waiting =
• Extra purchase price later (due to appreciation)
• + Rent paid during the wait
• + Lost principal you would have paid in the wait months
• + Lost appreciation you would have captured by owning in the wait months
• + Lost homeowner tax savings during the wait (pro-rated Year-1 benefit)

If you wait 12 months…

$—

Estimated total cost of waiting

Buy Now — Monthly Housing —

$—

P&I + taxes + insurance

Cash to Close (down only): $—

Yr-1 homeowner tax savings (incl. MCC): $—

Net after-tax monthly: $—

Buy Later — Monthly Housing —

$—

At appreciated price & later rate

New Down Payment: $—

Yr-1 homeowner tax savings (incl. MCC): $—

Net after-tax monthly: $—

Extra context (equity lost during wait)

Principal you’d have paid in wait months

$—

Home appreciation you’d have captured

$—

Copy summary

Educational illustration only. Consult your loan officer and CPA for your exact situation.

Interactive calculators are self-help tools. All examples are hypothetical and for illustrative purposes only.

E. Lee Smith

Branch Manager

RMLO

NMLS: 436498

512-948-6550

[email protected]

E. Lee Smith

Branch Manager

RMLO

NMLS: 436498

512-948-6550

Branch: Canopy Mortgage - TLC Group - 13809 Research Blvd, Ste 500, Austin, TX 78750 | Office #512-598-9093 | NMLSConsumerAccess.org #: 1359687 | Equal Housing Lender -All loans subject to credit and property approval.

Consumers wishing to file a complaint against a banker or a residential mortgage loan originator should complete and send a complaint form to the Texas department of savings and mortgage lending, 2601 North Lamar, suite 201, Austin, Texas 78705. Complaint forms and instructions may be obtained from the department’s website at www.sml.texas.gov. A toll-free consumer hotline is available at 1-877-276-5550. The department maintains a recovery fund to make payments of certain actual out of pocket damages sustained by borrowers caused by acts of licensed residential mortgage loan originators. A written application for reimbursement from the recovery fund must be filed with and investigated by the department prior to the payment of a claim. For more information about the recovery fund, please consult the department’s website at www.sml.texas.gov. State Licenses page, Privacy Policy, and Terms of Use