Josh Moving Up Analysis

This is a Total Cost Analysis that I put together for a client that was contemplating moving up. And I’d like to have more of these discussions. But the truth is I need your help. I’d like to walk you through the presentation and at the end I’m going to invite you to let me know  if there’s any clients that you have that would like to have a similar type of analysis done for them.

In the top left hand summary section this particular client had a current mortgage balance of $356,000 first and second mortgage with an estimated balance of about $356,000. You can see in the bottom left hand section there we’ve highlighted their current mortgage to be paid off in 18 years, their second mortgage will be paid off in a little over 12 years, a little less than 13 years.


So we said, okay let’s potentially look at refinancing, but let’s also look at what happens if you moved up to that $600,000 home, the price range that you mentioned you found some homes that were very interesting. And then we use the proceeds from the sale of your current home towards down payment and we ran a couple of different down payments scenarios. We looked at a 20% down on a $600,000 home, a 10% down and 5% down.

Now the interesting part of this tool and what we can do with this forecasting, is it allows us to look at the potential implications over the long term. In the bottom right hand corner what you can see here, and I’d encourage you to click into the “More Info” tab, but what you can see once we ran this analysis is that under any of these scenarios, the client ends up somewhere in the neighborhood of $250,000, a quarter of a million dollars more wealthy.

Net Worth

How did we model this? First, by looking at the potential future value of the home. So we took a $600,000 home at a 3% appreciation rate, fast forward that value over 20 years subtracting the mortgage value at 20 years – there’s equity. We also noticed that at the 20% down scenario, the client saved $535 a month, which could be invested and if we calculated a 7% rate of return over the next 20 years there’s going to be a pretty nice asset value there in addition to the home value.

In the 10% down scenario we did a similar type modeling. we used the $164 a month in savings, we added that to their investment account. Plus, we note that instead of putting $120,000 down, they are only putting $60,000 down, which could be invested. We did the same thing for the 5% down and if you click into the “More Info” tab in the bottom right hand corner, you’ll get a really good idea of how we model that.

More Info Net Worth

You can also click into the “More Info” tab in the Summary section and then once you are in the Summary section you can go over to the Reinvestment Strategy.

More Info Summary

We would be honored to do some of these presentations for your clients and if you can think of somebody who could use this type of value, please don’t hesitate to introduce me. Feel free to call (855) 260-9932 and I’m happy to do an analysis for your clients.

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