In this article, we will dive into what is inside your Cost of Waiting report. If you need help creating your report, check out our step-by-step guide by clicking here.
The Equity Change From Buying Now chart predicts the home’s accumulated equity from appreciation and amortization (making principal payments) through each waiting period, assuming the customer buys the home now instead of waiting. You can use the checkboxes to remove or add either the appreciation or amortization amounts from the chart
In the next section, you can toggle between viewing the home’s appreciation, comparison of monthly payments, and cash to close.
- The Appreciation toggle shows the appreciation of the property over time.
- The Payments toggle shows what the monthly payment would be now and what it would be if you were to wait and take this loan out at a later point.
- The Cash to Close toggle shows the difference in cash needed at closing to take out the same loan at a later time.
The Net Cost of Waiting shows the total net cost of waiting for the duration of time you selected (e.g. 2 years). The equation is Change from Appreciation and Amortization + Cumulative Payment Difference Compared to Waiting - Cost of Refinance = Net Cost of Waiting.
- The Cumulative Payment Difference Compared to Waiting is the difference between the payments made over the waiting period when buying now and the same number of payments when waiting. For example, if your waiting period is 2 years, this figure will compare the total payment difference between the first 24 payments.
At the bottom of the report, you will find a full breakdown of the property and loan details. You can make edits to these details by clicking Edit at the top right corner of the page.