FINANCE PROJECT

JACK BRYAN, SCENARIO 2

Available Income Per Month

Net amount available for Harper is $2846.6/month. This amount is determined subtracting all of Harper's other cost of living expenses and an additional $50/month for unexpected expenses from her gross income of $5833.33/month.

Maximum Mortgage Amount

The maximum loan that Harper could take would be $610,690.43. This amount is based on the net monthly amount available to Harper being used in its entirety to pay the mortgage monthly with a 3.803% APR interest over 30 years. The net monthly amount she has available already took into account the costs of utilities, cell phones, entertainment, etc., so it is realistic in how much Harper can afford for a home.
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Cost of Living Expenses

Student Loans: $292.67/month ($35000 paid off in 10 years at 6.8% interest)

Taxes: $1750/month (30% of gross income)

Car Payment: $325/month

Food: $230.33/month

Gas: $55.57/month

Car Insurance: $113.16/month

Cell Phone: $60/month

Entertainment: $50/month

Electricity: $30/month

Water: $40/month

Heat: $40/month


Interest Rate

Amortization Table

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How much time and money would be saved by increasing payments by 15%

By spending $2894.12/month (15% more), Harper will save approximately 69.56 months or almost 5 years in paying off her mortgage. This results in a savings of nearly $8660.81 in interest payments