Quick answer: Money kept after closing for emergencies and irregular expenses.
Definition
Money kept after closing for emergencies and irregular expenses.
Why it matters
Cash Reserves matters because buyers need to understand the full cash-flow impact of a mortgage before committing to a home.
Related formula
True monthly cost = loan payment + ownership costs + utilities + maintenance reserve
FAQ
What does Cash Reserves mean?
Money kept after closing for emergencies and irregular expenses.
Why does it matter for affordability?
Cash Reserves can change the true monthly cost or cash required to buy a home.
Where can I test it?
Use the TrueCost calculator to see how the term affects payment, DTI, or leftover cash.