By Hannah Luebbering
Brent, a construction foreman, was looking for a home in Kansas. He earns an annual salary of $50,000 before taxes. But he must make sure he leaves enough of his monthly income for necessities, food, and a $23,000 car with a 6.5% 5 year car loan that he just purchased.
Before Tax: $4, 166.67
After Tax: $4, 166.67- $1,250= $2,916.67
Monthly Car Loans
Rate = $450.02
Monthly Living Cost
Car Insurance: $60.00
Car Payment: $450.02
Total Monthly Expenses: $1,150.02
Budget For House
$2,916.67- $1,150.02= $1766.65
- This is the maximum monthly budget that can be afforded for a house.
Brent found a home in Overbrook Road, Leawood, KS.
Total House Price= 299,000
First Year Amortization:
Increased Monthly payment: $1,674.07
Time Saved: (30 years)(12 monthly payments) - (24 years)(12 monthly payments)
TIME SAVED: 6 years
Total Amount of Money Spent: (280 payments) * ($1674.07) = $468,720
MONEY SAVED: $55,080