BTHE BARATELLI INSTITUTE · Mentoring at Scale
FOR HOMEBUYERS, REALTORS, AND LOAN OFFICERS

Everything you need to know before making an offer — in one report.

Affordability ceiling, DTI ratios, the full PITI breakdown, year-1 cash needs, PMI removal timeline, rent-vs-buy comparison, and tax benefit. Fill in your numbers; the report builds itself. Print or save as PDF before the offer goes in.

Important — please read before using this tool
Estimates only. This is NOT a Loan Estimate, mortgage offer, pre-approval, credit decision, legal advice, tax advice, or financial advice. For educational use. Actual rates, payments, taxes, insurance, and closing costs vary by lender, property, market, and your individual circumstances. Confirm all figures with your licensed lender (NMLS-registered MLO), real-estate attorney, and CPA before relying on any number here for an offer or purchase decision. Past appreciation rates are not predictive of future returns. The Baratelli Institute is an independent third-party publisher; we do not originate loans, broker mortgages, or transact in real estate.

Tell us about you and the home

All inputs stay in your browser. Nothing is transmitted, captured, or sold.

Your finances
Total before taxes for everyone on the loan.
For down payment + closing + reserves.
Auto, student, credit-card minimums, child support.
The home
Conv. min 5%, FHA min 3.5%, VA 0%. Below 20% triggers PMI on conventional.
Get quotes from multiple lenders — 0.25% saves $30K+ on a 30-yr.
Carrying costs
FL avg 0.83%, TX 1.81%, NJ 2.49%, NY 1.72%, CA 0.75%.
FL/CA coastal: $3-8K. Inland: $800-2,500.
Drives PMI/MIP rules. FHA has lifetime MIP <10% down.
Tax position
Drives mortgage-interest deduction value.
FL/TX/NV/WA/TN/NH/SD = 0%. CA up to 13.3%.
Optional · rent vs. buy comparison
What this same home rents for, or what you currently pay.
Long-term US avg ~3.5-4%.
RESIDENTIAL BUY REPORT
Pre-purchase analysis
Generated · All figures rounded · Estimates only — confirm with your lender at lock

Your scenario

The numbers below were generated from these inputs. Change any variable above and the report rebuilds automatically.

The headline numbers

Total monthly PITI
$0
All-in housing payment
Year-1 cash needed
$0
Down + closing + reserves
Back-end DTI
0%
Lender ceiling: 43-50%
Affordability ceiling
$0
Max price at 43% back-end DTI

Affordability check

Lenders look at two ratios: front-end (housing only) and back-end (housing plus all other debt). Conventional loans target 28% / 36%; many push to 43%; FHA can go to 50% with compensating factors.

Front-end DTI (housing only)
0%
Back-end DTI (housing + all debt)
0%

Monthly PITI breakdown

Principal & Interest, plus monthly escrowed taxes and insurance, plus PMI if applicable, plus HOA. The number that actually leaves your account each month.

Year-1 cash plan

Down payment is the big number — but closing costs and recommended reserves usually equal another 5-7% of the purchase price.

PMI removal timeline

If your down payment is below 20%, you'll pay private mortgage insurance until your loan-to-value ratio drops below 80% — through amortization, additional principal payments, or appreciation.

Tax benefit — itemize vs. standard

Mortgage interest and SALT (state and local taxes, capped at $10K) are deductible if you itemize. The 2017 standard-deduction increase made itemizing rare for non-coastal buyers — we calculate both and show which actually wins.

Rent vs. buy — over your hold period

The total cost of buying (PITI + maintenance + opportunity cost on down payment − tax benefit − equity built − appreciation) compared to total rent paid over the same period. Honest comparison; no thumb on the scale.

Considerations to discuss with your advisor

The math points the discussion in a direction. Your licensed lender, attorney, and CPA convert it into an action plan. Bring this report to that meeting.

Discussion points

⌂ Equal Housing Opportunity. The Baratelli Institute supports the principles of the Federal Fair Housing Law and the Equal Credit Opportunity Act. Lenders, mortgage brokers, and real estate professionals advertising or referencing this report are required to comply with the Fair Housing Act, ECOA, and applicable state real estate advertising regulations.

Educational tool — not advice. This is a decision-support tool. It is not an offer to lend, an interest-rate quote, or legal/tax advice. Actual loan eligibility, rate, and terms are set by your lender at lock based on full underwriting. Tax outcomes depend on your full return — confirm with a CPA. Property tax, insurance, HOA, and maintenance assumptions vary by property; confirm with your insurance agent and HOA.

Educational references and tools — not legal, tax, accounting, or investment advice, and not a recommendation to buy or sell any security. Consult a qualified professional about your specific situation. © 2026 The Baratelli Institute.