Video Tutorial:

Many people are in a position where they are saving for a home. These people may want to see some actual projections that tell them how many months they will have to save in order to theoretically be able to purchase the home with a loan from a regular bank.

The model is designed to take in user specific information that drills down from expected gross monthly income over the next 6 years and then removes expected taxes and living expenses to show what would theoretically be able to be saved in the bank each month.

With this monthly free cash flow data, it is not too hard to see your savings grow. Based on the planned purchase price of the home, the planned down payment amount, and the amount of cash you want to keep in the bank after the purchase, you will see at what month there is enough cash available to make the home purchase.

There is also a chart that displays your expected cash position and monthly savings before and after the purchase. Based on that, you can also see how much cushion you have before and after the purchase assuming your current rent / mortgage gets replaced with the new mortgage.