Which financing strategy builds the most wealth?Same total monthly outlay of $4,377 — the cheaper payment invests the surplus.
Rate quotes
Starting values are placeholder market estimates — replace them with your actual lender quotes. Every result below uses this table.
| Program | Lender | Rate % | Points % | Points cost $ | Lender credits $ |
|---|---|---|---|---|---|
| 3.5% FHA | |||||
| 10% FHA | |||||
| 10% Conv 30 | |||||
| 20% Conv 30 | |||||
| 10% Conv 15 | |||||
| 20% Conv 15 |
10% Down Conventional — 30 Year
20% Down Conventional — 30 Year
Higher projected value
20% Down Conventional — 30 Year
Breakeven return
8.52%
after-tax basis
Cash retained
$31,105
vs $86,405
Advantage at year 10
+$11,116
20% Down Conventional — 30 Year costs $521 less per month and needs $55,300 more cash at closing. Above 8.52% after-tax investment return it wins over 10 years; at your 6.8% assumption it leads by $11,116.
Phases out $$100,000–$$109,000 AGI.
These results are educational estimates. They are not a loan offer, quote, rate lock, pre-qualification, approval or commitment to lend, and they are not financial, tax, legal or investment advice. Output depends entirely on the assumptions you enter; a lender's actual figures, closing costs, escrows and underwriting decisions will differ. Investment returns are hypothetical, are not guaranteed, and past performance does not predict future results. Verify every number with your lender and a tax professional before acting.
Home value cancels between options on the same property, so comparisons use investments plus cash minus mortgage balance.
down-payment-engine v1.3.0 · tax-estimator v1.2.0
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