Chapter 1 of 2
The Seattle Math
Dana models the down payment timeline. At her current $1,800/month savings rate, she'll have a 10% down payment ($78k) in 16 months. But at 10% down on a $780k home, her monthly payment would be $4,890 — 64% of her take-home pay. The model shows what 20% down changes.
Key Insight
At 10% down, Dana's housing cost-to-income ratio is 64% — well above the 28% guideline. At 20% down ($156k), it drops to 53%. Neither is comfortable. The model shows the rent-vs-buy break-even at 7.2 years.
Model This Scenario