Last updated: 2025-01-15

Sources & References

Complete bibliography of formulas, regulations, and data sources used in Money.Holdings calculators.

Regulatory & Government Sources

United States

  • CFPB Regulation Z (12 CFR 1026) — Truth in Lending Act implementation; APR calculations, Loan Estimate format
  • CFPB "Ability-to-Repay" Rule (12 CFR 1026.43) — Qualified mortgage standards, 43% DTI threshold
  • Fannie Mae Single Family Selling Guide — Underwriting guidelines, LTV limits, PMI requirements
  • Freddie Mac Single-Family Seller/Servicer Guide — Conforming loan standards
  • IRS Publication 936 — Home mortgage interest deduction
  • IRS Publication 590-A/B — IRA contribution limits, distribution rules
  • IRS Publication 527 — Residential rental property (depreciation context)
  • Department of Labor ERISA — 401(k) contribution limits, RMD rules
  • Social Security Administration — Benefit calculators, full retirement age tables

United Kingdom

  • FCA MCOB (Mortgages and Home Finance: Conduct of Business) — Affordability assessment, APRC calculation
  • FCA CONC (Consumer Credit) — Creditworthiness assessment, APR calculation
  • HMRC Savings and Investment Manual (SAIM) — ISA limits, tax treatment
  • HMRC Pensions Tax Manual (PTM) — Annual allowance, lifetime allowance, carry forward
  • MoneyHelper (formerly Money Advice Service) — Consumer-facing guidance, budget planner methodology
  • Bank of England — Base rate history, mortgage market statistics
  • UK Government Gateway — Tax calculators, National Insurance rates

Australia

  • ASIC Regulatory Guide 203 — Mortgage responsible lending obligations
  • ASIC Regulatory Guide 175 — Credit licensees' obligations
  • APRA Prudential Standards (APS 220, APS 113) — Capital adequacy, credit risk
  • ATO (Australian Taxation Office) — Superannuation caps, contribution rules, co-contribution
  • Moneysmart (ASIC) — Budget planner, compound interest, retirement calculators methodology
  • RBA (Reserve Bank of Australia) — Cash rate, lending rate statistics
  • FASEA (Financial Adviser Standards) — Best interest obligations (context)

Academic & Industry Texts

  • Bodie, Kane, Marcus — "Investments" (12th ed.) — Ch. 5 (Risk/Return), Ch. 6 (Portfolio Theory), Ch. 14 (Performance Evaluation)
  • Fabozzi — "Fixed Income Mathematics" (4th ed.) — Bond math, mortgage-backed securities, amortization
  • Hull — "Options, Futures, and Other Derivatives" (10th ed.) — Ch. 14 (Monte Carlo Simulation)
  • Kitces — "Monte Carlo Analysis for Financial Planning" (Kitces Report) — Best practices for financial planning simulations
  • Pfau — "Retirement Planning Guidebook" — Safe withdrawal rates, sequence risk
  • Vanguard — "Capital Markets Model" Methodology Papers — Return assumptions, correlation matrices
  • Morningstar — "Asset Allocation Research" — Portfolio construction frameworks

Calculator-Specific Sources

Mortgage Payment / Amortization / Overpayment

  • Standard amortization formula (present value of annuity)
  • CFPB Loan Estimate Explorer (sample calculations)
  • Fannie Mae Desktop Underwriter documentation (PMI factors)

Compound Interest

  • Future value of annuity due/ordinary formulas
  • EAR/APR conversion (Reg Z Appendix J)

Mortgage Affordability

  • CFPB Ability-to-Repay / Qualified Mortgage rule
  • Fannie Mae Form 1003 (Uniform Residential Loan Application) — DTI calculation
  • UK FCA MCOB 11.6 (Affordability Assessment)

Savings Goal

  • Payment formula rearranged for PMT
  • MoneyHelper "Savings Calculator" methodology

Debt Payoff Planner

  • Avalanche: Standard debt optimization (highest rate first minimizes interest)
  • Snowball: Behavioral finance literature (Gal & McShane, 2012; Motivation & progress)

Retirement Savings

  • Bengen (1994) "Determining Withdrawal Rates" — 4% rule origin
  • Trinity Study (Cooley, Hubbard, Walz, 1998) — Portfolio success rates
  • Pfau (2010+) — Updated safe withdrawal rates with modern valuations
  • Social Security Administration Actuarial Life Tables

Net Worth

  • Standard balance sheet methodology (GAAP/IFRS framework for individuals)
  • Federal Reserve Survey of Consumer Finances (category definitions)

Budget Calculator

  • 50/30/20 rule: Warren & Tyagi "All Your Worth" (2005)
  • MoneyHelper Budget Planner category framework
  • CFPB Financial Well-Being Scale (category relevance)

Wealth Simulator (Monte Carlo)

  • Hull Ch. 14 — Geometric Brownian Motion for asset prices
  • Kitces Report — Practical implementation for financial planners
  • Vanguard VCMM — Return distribution assumptions

Data Sources (Default Rates & Assumptions)

Default values in calculators are illustrative averages as of January 2025. Sources for defaults:

  • Mortgage Rates: Freddie Mac PMMS (US), Bank of England quoted rates (UK), RBA indicator lending rates (AU)
  • Investment Returns: Vanguard 10-year nominal return projections (60/40 portfolio ~7%)
  • Inflation: Central bank targets (2% US/UK, 2-3% AU)
  • Property Tax: US national average ~1.2%; UK Council Tax bands; AU council rates
  • Insurance: US average ~0.35% home value; UK buildings insurance; AU home insurance
  • PMI: US: 0.5–1% loan amount; UK: not applicable (LTV > 90% requires different product); AU: LMI 0.5–2%

Active Affiliate Partners (Q1 2025)

Per our Affiliate Disclosure, current partners include:

  • Mortgage marketplaces: LendingTree, Bankrate, NerdWallet (via impact.com/CJ)
  • Brokerages: Vanguard, Fidelity, Schwab, Interactive Brokers (direct/impact.com)
  • Tax software: TurboTax, TaxAct, FreeTaxUSA
  • Budgeting: YNAB, Monarch Money
  • Insurance: Policygenius, Lemonade

Updated quarterly. See Affiliate Disclosure for commission details.

Verification & Updates

  • Regulatory sources checked monthly for updates
  • Rate defaults reviewed quarterly
  • Tax year parameters updated by January 31
  • Methodology changes logged in Corrections Policy

Contact

Source verification requests: sources@money.holdings