Using a Homeownership Calculator

Jeff Lang February 20, 2023

Make an informed real estate move with this mortgage calculator.
Today I’ll discuss the value of homeownership and introduce to you the PLACE Mortgage Calculator app, which is a tool that can help you assess whether now is the right time to buy or continue renting. You can download it or you can reach out to me so I can give you the link. At 0:47 in the video above, I will be showing you my phone’s screen so you can follow along as I try to use it.
As you jump into the app, there is an option at the bottom that lets you calculate the value of homeownership. Click on that so you can start with the process. You can customize the data to your situation, but as an example, I’ll change the purchase price to $1 million with a down payment of 20%, and set the interest rate to a conservative 6% and the average appreciation to 2%. I’ll also change the tax filing status to married with an income that’s more typical to couples in our area.
“The PLACE Mortgage Calculator app can help you assess if now is the right time to buy or continue renting.”
The calculator shows that in year one, the appreciation on the property will be $20,000 with the principal reduction almost at $10,000. This tells us that this is $10,000 extra equity that we built up. It also shows you the tax savings. For professional tax advice, please always talk to your tax advisor about this topic. In the example we laid out, the tax savings is a little over $15,000. If you look at it all combined, there’s around $45,000 of benefits from owning the property.
It’s important to consider your current situation and determine if it makes sense for you, but this can shed new light on the cost of homeownership. Keep in mind that this is compounded year after year, which can add up significantly over time. On the other hand, if you’re currently renting, your rent will likely increase each year, meaning you’re essentially paying off your landlord’s mortgage rather than building equity in your own home.
I’m always happy to work through specific examples for you and talk to you about what’s going on in our changing market. Call or email me so we can check to see if now is the right time for you to buy a home. I look forward to connecting soon.

Jeff Lang

Jeff Lang


About The Author

Jeff Lang's career in real estate is a testament to his strategic, growth-oriented mindset and his dedication to helping clients navigate the unique landscapes of San Mateo County. With his focus on areas from Burlingame to San Carlos and Pacifica since 2011, Jeff has become an invaluable asset to those seeking the perfect balance of urban and suburban life. His appreciation for the county's temperate weather and easy access to a plethora of outdoor activities resonates deeply with his clientele, who seek both the vibrancy of urban living and the tranquility of suburban spaces.

Beginning his journey in commercial real estate in San Francisco in 1997 and later transitioning to residential real estate in La Jolla, Jeff has honed a deep understanding of the industry. Known for his professional, caring, and patient approach, he brings a results-oriented and responsive attitude to every transaction. Jeff's unique strength lies in his ability to outperform competitors by leveraging his extensive experience and education.

Jeff leverages his education having received his JD and an MBA, alongside numerous real estate certifications including Master Certified Negotiations Expert and Certified Luxury Home Marketing Specialist, enabling him to devise winning strategies for each transaction. His approach not only ensures success but also puts his clients at ease, earning their trust and loyalty.

Outside of real estate, Jeff's life is as dynamic and multifaceted as his professional pursuits. His hobbies range from trail running and hiking with his dog to playing golf, tennis, and pickleball, and he's an enthusiastic Peloton user. A proud graduate of law school at the age of 42 and an Ironman triathlon finisher, Jeff's achievements speak to his determination and commitment. These qualities, combined with his professional expertise, make him an exceptional choice for buyers, sellers, and investors—especially in the $2m+ range—who are looking for more than just a transaction but a partnership with a seasoned expert who will turn them into raving fans.

In his over two decades in real estate, Jeff is most proud of partnering with his clients to build the life of their dreams. It helps that Jeff is a negotiations shark, having competed nationally as president of the negotiations team in law school and as a Master Certified Negotiation Expert (MCNE). His MBA and JD also give him and his clients a competitive advantage in every transaction, leading to his listings selling for 4.8% more than the average San Mateo County agent and offers getting accepted 6x more frequently.

If you are looking for an agent who will take on your goal as their own and be relentless in their pursuit of achieving that goal, then you want Jeff as your partner. He’s completed five marathons, including one in Antarctica, and dozens of triathlons, including an Ironman. His passion for taking on a challenge and grinding away to craft creative solutions is unparalleled. Jeff has a natural talent for putting things in perspective, keeping your eye on the prize, and clarifying the strategy to provide opportunities for success in your transaction.

A few of Jeff’s other certifications include NAR’s ePro for advanced digital marketing and NAR’s Green Designations for sustainability in real estate, Pricing Strategy Advisor (PSA) certification, Keller Williams’ BOLD program, and Tony Robbins’ Mastery University. He is also a member of the Institute for Luxury Marketing. These help him and his clients outpace the competition by selling at a higher price and getting offers accepted more often. This track record and partnership continue to provide repeat and referral business, the basis for his growing business.

Reach out to Jeff for a free consultation to discuss your real estate goals. He would be happy to make your goals his and utilize his extensive experience to make it happen.


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