Mortgage Scenario Planner

Why Optimize for Your Time Horizon?

If you know how long you plan to stay in a home or hold a mortgage, you can optimize your loan for that duration and choose the mortgage that is cheapest for your specific situation.

Growing family (6–7 years)

As a concrete example, say you buy a townhome as a newlywed couple with one bedroom. As your family grows, you may want a larger house within the next six to seven years. In this scenario, you would want to optimize your mortgage knowing that you won't have it for 30 years.

Settled for the long term (30 years)

As another example, say you've advanced in your career, your family is set, and you know you're going to live in a place for an extended period of time—maybe for the rest of your life. In this scenario, you'll want to get the best loan for the long term, knowing you'll likely have the mortgage for the full 30 years.

Fix and flip (less than 12 months)

Let's take another scenario. Say you buy a property hoping to fix it and then flip it. You're likely going to want to pay the least amount of closing costs up front and a higher rate, knowing that you're only going to have the loan for a short period of time—say less than 12 months.