A personal finance mission
You just landed your first real job. Time for the biggest money question of your twenties: should you buy your first home with a mortgage, or rent with a lease? Work through 10 levels — pick a career, hunt for houses, crunch real mortgage math — and finish with your own Closing Day Report to turn in.
Level 1 · The fork in the road
The biggest money decision at 18 — and both paths can win this game. They just play very differently.
Level 2 · The budget
Lenders use the 36% rule: all your monthly debt payments — including the mortgage — shouldn't top 36% of gross monthly income. First, pick your ride and your phone plan. Those payments are debt, and every dollar of them shrinks the house you can buy. No down payment, and today's average rate is 6.5% on a 30-year loan.
We set aside 15% of the housing budget for property tax + insurance; the rest pays the loan itself. Home price comes from the standard mortgage formula run in reverse at 6.5% for 360 months.
You can afford a house worth about
Level 3 · House hunt
Level 4 · The tax bill
Even with the house paid off, you'll pay property tax every year. Each city sets its own rate.
Your annual property tax bill = home price × tax rate. What is it?
Level 5 · The 30-year mortgage
A mortgage payment isn't just the loan. It's P&I (principal & interest) + property tax + home insurance, split monthly. Insurance now runs about 0.6% of the home price per year.
Home insurance per year = price × 0.6% (that's × 0.006). What is it?
Level 6 · The 15-year mortgage
Now repeat it with a 15-year fixed loan. Shorter loans get a lower rate — about 5.8% today vs 6.5%. Bigger payment, way less interest. Let's see how much less.
Total interest over 180 months = (monthly P&I × 180) − home price. What is it?
Level 7 · The showdown
30-year — advantages:
30-year — disadvantages:
15-year — advantages:
15-year — disadvantages:
Which mortgage would you go with, and WHY?
Level 8 · Plan B: renting
Maybe buying isn't the move yet. Renters use the 30% rule: spend no more than 30% of monthly take-home pay on rent. After taxes, take-home pay is roughly 75% of gross.
Your rental budget = monthly take-home pay × 30% (× 0.30). What is it?
Level 9 · Rent hunt
Level 10 · Life happens
No budget survives the year untouched. Roll two life events — raises, breakdowns, lucky breaks, surprise bills. Whatever you roll gets factored into your final budget. No rerolls. That's the point.
Final level · Closing day
Same paycheck, same debts, same life events. Only the housing changes. Pick the life you can actually afford.
Why might you RENT a place instead of buying one? (think expenses, your time, flexibility…)
Why might you BUY a place instead of renting one?