Wealthfront launches homeownership planning tool
The pressure is high in today’s housing market. Inventory is low in many parts of the US and that, combined with the threat of rising interest rates and booming housing demand, is making home buyers feel the need to buy. Automated investment advisory company Wealthfront has unveiled home planning tools for Path, its automated financial planning solution, reports Julie Muhn at Finovate (FinTech Futures’ sister company).
The Path home planning tool aims to help buyers understand what they can afford today and what it may take for them to be able to afford a larger home in the future. Also importantly, the tool shows users how this purchase may impact future goals, such as retiring early or paying for a child’s college tuition. Path extends beyond traditional affordability calculators to show a cost estimate that considers the user’s financial standing and other financial goals.
Leveraging third party data, Path projects future home prices and mortgage rates that are specific to the borrower’s financial situation. The tool also takes into account the varying home prices in different zip codes. Once the borrower defines the specific location and type of house they’re looking for, Path lets them know if they’re on track to afford it. When they find the home they’re looking for, Path advises the user which account the downpayment funds should come from.
This is an addition to Path, which originated as a retirement and education planning tool. The tool still has one last financial frontier left – helping users financially plan to start a family.
Wealthfront allows users to invest up to $10,000 for free and currently manages $10.5 billion in assets for investors across the US. Earlier this month it received $75 million in funding, bringing its total raised to $205 million.