FT FinToolSuite

Mortgage Planning

Cash Buffer for Closing Costs and Emergency Fund

Buffers keep things calmer. Here is a simple checklist for upfront and ongoing items, one quick example, and a link to the emergency fund planner so you can test buffers alongside affordability.

Published: January 1, 2026 · Updated: January 1, 2026 · By FinToolSuite Editorial

Open the stress tester

Plan your buffers alongside affordability scenarios and note cash needs.

Try the Mortgage Stress Tester

Disclaimer

  • Educational only. No guarantees. No personal data requests.

Why buffers matter

Upfront closing costs reduce available cash; an emergency fund helps absorb surprises without leaning on debt. Testing buffers alongside affordability keeps plans realistic.

Checklist

  • Closing cost percent
  • Down payment
  • Cash buffer for moving or setup
  • Emergency fund for unexpected expenses
  • Maintenance allowance for repairs

Illustrative example

If closing costs are 3% on $400,000 ($12,000) and you want three months of essential expenses at $3,000/month ($9,000), you’d plan for $21,000 in buffers alongside your down payment.

Estimate your buffer in the planner

FAQs

Should buffers sit in the tool?

Use the tool for affordability and the emergency fund planner for buffers; track both.

Do buffers change DTI?

Buffers are cash targets, not monthly costs, but closing costs can affect how much you put down.

Where is privacy info?

See Privacy Policy.

Plan your buffers

Open the mortgage affordability stress tester and the emergency fund planner to balance cash needs and monthly comfort.

Open the stress tester