Bradshaw Street Bungalow

Ryan Thomas Hr 4 Stein

Scenario 3: Jenny

Expenses

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


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].