Bradshaw Street Bungalow
Ryan Thomas Hr 4 Stein
Scenario 3: Jenny
Bank Teller
Salary: $40,000 per year
After Taxes(%30): $28,000
Monthy: $2,333
After Taxes(%30): $28,000
Monthy: $2,333
Student loans
$20,000
$230 per month
$230 per month
Car Payment
$230 per month
Expenses
Utilities
$100 per month
(Electricity, Water, Heating)
Communication
$50 per month
(Cell Service, Landlines)
(Cell Service, Landlines)
Insurance
$100 per month
(House, Car, Life)
Houshold/Entertainment
$225 per month
(Food, Clothing)
Transportation
$100 per month
(Gas, Car Maintenance)
Loans
$460 per month
(Car Payments, Student Loan)
Picking a Comfortable Loan
Bank of America suggests your Debt to income ratio should be 36% or less of your gross monthly income. Using their Affordability Snapshot, Jenny can comfortably afford $740 per month.
She is capable of affording $1,491 per month after expenses (above) and taxes, however; if an unexpected expense were to come up such as an injury, she would be unable to afford it.
With Jenny's Given available income ($740), she can afford to buy a house worth about $142,483. (Finance App on Calculator)
$141,900
10888 Bradshaw Street OP, KS 66210
- 4 Beds
- 2 full/1 half Bathrooms
- 1,856 square feet
Monthly Payment
Minimum Monthly Payment: $736.97
- Time 30 years
- Interest: 4.712% (30 year fixed rate loan-Wells Fargo)
Monthly Payment (+%15): $847.51
- Time 10 years 9 months (~10 3/4)
- Interest: 4.712%
Finance App
---Minimum Monthly Payment---
N=360(12*30)
I%=4.712
PV=141,900
PMT=?
FV=0
P/Y=12
---Monthly Payment(+15%)---
N=?
I%=4.712
PV=141,900
PMT=847.51(736.97*1.15)
FV=0
P/Y=12
N=360(12*30)
I%=4.712
PV=141,900
PMT=?
FV=0
P/Y=12
---Monthly Payment(+15%)---
N=?
I%=4.712
PV=141,900
PMT=847.51(736.97*1.15)
FV=0
P/Y=12
References
Wells Fargo (1999). Today's Mortgage Rates. [ONLINE] Available at: https://www.wellsfargo.com/mortgage/rates/?dm=DMIWFHPRAT. [Last Accessed 2 January 13].
Reece and Nichols (2013). 10888 Bradshaw Street. [ONLINE] Available at: http://www.reeceandnichols.com/homes-for-sale/KS/Overland-Park/66210/10888-BRADSHAW-Street-85104843. [Last Accessed 2 January 13].
Bank of America (2014). Affordability Snapshot. [ONLINE] Available at: http://loans.bankofamerica.com/en/tools/affordability-snapshot.html?standalone=y. [Last Accessed 2 January 13].
Reece and Nichols (2013). 10888 Bradshaw Street. [ONLINE] Available at: http://www.reeceandnichols.com/homes-for-sale/KS/Overland-Park/66210/10888-BRADSHAW-Street-85104843. [Last Accessed 2 January 13].
Bank of America (2014). Affordability Snapshot. [ONLINE] Available at: http://loans.bankofamerica.com/en/tools/affordability-snapshot.html?standalone=y. [Last Accessed 2 January 13].