Home Purchase

Buying a forever home is a big deal in nearly everyone’s life at some point in time, yet the education we get about how to approach this endeavor leaves a lot to be desired. Primary residences can typically be bought using FHA loans which require 3-5% down, yet many people save and put down 10-20% or more, despite the history of Real Estate appreciation only being in the 4-7% ballpark annually. Smart investors recognize that putting a minimum amount down and finding a return of greater than 4-7% annually is a more effective way to grow wealth than by parking more cash down into the home, despite this increasing the monthly payments and interest accrued.

In this model: Input the home price, cash down, Loan APR %, Loan Term, and estimated annual appreciation value of the home. You will also input a checkpoint year so you can see how the values compare at a very specific year within the loan term, and then toggle the Bitcoin CAGR. The output will show you a traditional scenario which uses the down payment amount you’ve entered, and a 2nd scenario which uses half of that down payment for the home, and the other half to invest in Bitcoin. Keep in mind that mortgages require a minimum amount down which is typically 3-5% for FHA/Conventional loans, so this use case works best when your down payment amount is ~10% of the home price or more.