HouseMath 2.0
Posted
Dec 17 2007, 09:41 AM
by
Karen Datko
Rating:
This post comes from J.D. Roth at partner blog Get Rich Slowly.
Should you buy a house or continue to save for retirement? Balancing your present and your future can be difficult, especially where housing is concerned.
HouseMath 2.0 is a Web-based app designed to help users explore the costs of purchasing a new home. You enter the numbers for the proposed transaction, and HouseMath runs the numbers to let you know the financial implications. Rather than bombard the user with a bunch of numbers, though, the program provides an easy-to-understand narrative summary.
HouseMath features built-in information for a handful of major markets. According to its creator, additional markets will be added in the future. (You can help by providing information about your local housing market.) Because Portland, Ore., isn't one of the markets listed, I chose to play with numbers using HouseMath's Seattle-based information. I entered the details for the mortgage we took out 3 1/2 years ago, and HouseMath provided the following analysis:
Kris and I could find a $750-a-month apartment and live in that, and we'd still be in the same financial position down the road.
HouseMath offers further analysis of closing costs, first-month costs and selling costs. It also provides a couple of charts, as well as details on the long-range financial effects of buying a house.
This is an interesting little app. There's a lot of potential here. It seems a little light at the moment, but with proper polishing, this could be a useful tool for many people.
Other articles of interest at Get Rich Slowly:
“Is it better to invest or to prepay a mortgage?”
“The thrill of paying off a mortgage”
“What's the best way to save for a down payment?”
