Financial Viability
The PITI method doesn't tell the whole story.
Standard mortgage evaluation ignores energy costs, maintenance, equipment replacement, and resilience exposure that compound for decades.
The Math Behind the Method
Three ways to count the cost.
The same building looks very different depending on how you measure it. Only one method tells the truth over a 30-year horizon.
PITI only — Principal, Interest, Taxes, Insurance. The lender's view.
PITI + energy, equipment maintenance, and repairs over 30 years.
Higher upfront cost. Far lower energy, maintenance, and insurance over time.
A structure that costs $40,000 more to build can cost significantly less over 30 years when energy, maintenance, and structural resilience are factored in. This is the conversation most contractors will never start.
Structure #1 — Code Minimum
$100,000 to build
- • 1,000 sq ft, stick-built 2x6" @ 16" o.c.
- • Standard heat pump + electric water heater
- • R-38 ceiling / R-19 walls / R-19 floors
- • "Passing math with a D" — meets minimum code
Structure #2 — Engineered for Life
$140,000 to build
- • 1,000 sq ft, ICF construction with enhanced trusses
- • High-efficiency geothermal + waste-heat hot water
- • R-50–70 ceiling / R-30–50 effective walls
- • Lower true 30-year cost despite +$40K upfront
"Knowledge without action is a daydream. Action without knowledge is a nightmare."