How this calculator keeps score
Most mortgage calculators stop at principal and interest. That is the smallest part of the story. This one prices the same house two ways — bought through Ownify's fractional ownership program, or with a 30-year mortgage — and counts everything: the cash you need on day one, every monthly bill, and what is left after selling costs on the day you move out.
The mortgage side uses today's average rate for your credit score and down payment, from the Optimal Blue index the St. Louis Fed publishes every business day. It adds mortgage insurance from a standard rate card, the local property tax, home insurance, 1% of the home's value a year for repairs, closing costs, and the 7.5% it typically costs to sell. The Ownify side uses our actual program terms: 2% down, one fixed payment that already covers taxes, insurance and repairs, and 1.6% of the home bought every year. Every line is in Check our work. We would rather you check our math than take our word for it.
A $400,000 home, both ways
Take a $400,000 home in Cary, NC, a 720 credit score, and a five-year stay with prices rising 2.5% a year. With a 30-year mortgage at 7.44% and 10% down you need $58,200 in cash to close: $40,000 down, plus $18,200 in closing costs, lender fees and make-ready repairs. With Ownify you need $7,999.
Month to month the two are a wash: $3,525 for Ownify, fixed, against an average of $3,534 for the mortgage once mortgage insurance, taxes, insurance and repairs are counted. Sell after five years and the mortgage hands back $77,923 to Ownify's $36,683, because the mortgage holder owned all of the appreciation. Net everything and five years of housing cost $182,816 with Ownify and $192,319 with the mortgage.
$50,201 less to get in. $9,503 less over 5 years. Same house.
| $400,000 home, 5 years | Ownify | 30-year mortgage, 10% down | Difference |
|---|---|---|---|
| Cash to get in | $7,999 | $58,200 | $50,201 less with Ownify |
| Average monthly cost | $3,525 | $3,534 | About the same |
| Cash back when you sell | $36,683 | $77,923 | $41,240 more with the mortgage |
| Total housing cost | $182,816 | $192,319 | $9,503 less with Ownify |
Mortgage rate: Optimal Blue 30-year conforming index for FICO 720–739 with less than 20% down, October 8, 2026, via FRED. Move any control above to run your own numbers.
Where the mortgage wins
A mortgage is a leveraged bet, and leveraged bets pay when prices run. In this example the mortgage comes out ahead only if home prices rise faster than about 3% a year, every year you own, or if you stay longer than 7 years. The price of that upside is the range of outcomes. From a 7% annual slide to a 7% annual boom, Ownify's five-year cost moves by $12,171. The mortgage's moves by $246,867. That spread is the risk you carry when you are the only owner of the house.
So the answer to “which is cheaper?” is: it depends on how long you stay and what prices do. Slide Home prices each year and How long will you stay? and watch where the lines cross for you. For the full argument, read Ownify compared to a traditional mortgage.
Ownify is not rent-to-own
Rent-to-own gives you an option to buy later, and in most contracts the option fee and rent credits are gone if you never exercise it. Ownify makes you a co-owner at closing: your 2% is real equity, it moves with the home's value, and you buy more of the house every month. If you came looking for a rent-to-own vs. mortgage calculator, this is the closer comparison to the decision in front of you — what it costs to get in, to stay, and to leave. See how rent-to-own works, and how Ownify differs.
Frequently asked questions
- How much cash do I need to buy a $400,000 house?
- With a 30-year mortgage and 10% down, about $58,200: a $40,000 down payment plus roughly $18,200 for closing costs, the lender's origination fee and make-ready repairs. An FHA loan with 3.5% down cuts the down payment to $14,000, but the closing costs stay. With Ownify it is 2% of the home's cost: $7,999.
- Is Ownify cheaper than a mortgage?
- It depends on how long you stay and what home prices do, which is the point of the calculator. Ownify needs far less cash up front in every scenario. On total cost, Ownify comes out ahead when prices rise slowly, stay flat or fall, and on shorter stays. A mortgage comes out ahead on long stays in fast-rising markets, because the mortgage holder keeps all of the appreciation.
- How much is PMI, and when does it go away?
- Private mortgage insurance depends on your credit score and down payment. For most lenders, it runs from 0.19% to 1.86% of the loan a year. With a 720 score and 10% down it is 0.46%, or $138 a month on a $360,000 loan. For a conventional loan, PMI drops off once the loan falls below 80% of the home's value. FHA loans charge 1.75% up front plus 0.55% a year for the life of the loan.
- Where do the mortgage rates come from?
- From the Optimal Blue Mortgage Market Indices — daily averages of actual rate locks — published by the Federal Reserve Bank of St. Louis (FRED). The calculator picks the index for your credit-score band and for whether you put down less than 20%, and uses the FHA or jumbo index when that is the loan you would need. You can also type in a rate you were quoted.
- Who pays for repairs, property taxes and insurance?
- With a mortgage, you do, and they rise with the value of the home. The calculator budgets 1% of the home's value a year for repairs, 0.5% for insurance, and the local property tax rate. With Ownify those costs are inside your fixed monthly payment, and increases are carried by your co-investors.
- What are the downsides of fractional ownership?
- You own a share of the home, so you earn a share of the appreciation. If prices climb quickly, or you stay many years, a mortgage builds more wealth — the calculator shows exactly where that line is. Ownify is built as an on-ramp: start with 2%, build equity for five to seven years, then refinance into a conventional mortgage using your built-up Ownify equity.
- How long do I need to stay for buying with a mortgage to pay off?
- Selling a mortgaged home costs about 7.5% of its value, so short stays are expensive. In the example above, the mortgage needs more than 7 years to beat Ownify. Move the How long will you stay? slider to find your own break-even.
- Is Ownify a rent-to-own program?
- No. With Ownify you are a co-owner from closing day: you start with a 2% equity stake, buy more every month at the home's current value, and share in appreciation in proportion to what you own. There is no option fee to lose and no purchase deadline.
- Does the calculator work for FHA loans?
- Yes. Switch the loan type to 30-year FHA. The minimum down payment becomes 3.5%, the rate comes from the Optimal Blue FHA index, and FHA's mortgage insurance is added for the life of the loan.
- Which markets and home prices does it cover?
- The 18 cities in Colorado and North Carolina where Ownify co-invests today, for homes from $200,000 to $750,000 — and up to $1,000,000 in Boulder, Colorado. See all Ownify markets.