Finance Project

Maggie Banks

Monthly Payment

Jenny is left with $1,873.17 per month after deducting student loans, car payments, and taxes. If Jenny follows Fox Business's News advice and does not exceed the recommended 28% of monthly income on a mortgage, she can put $524.49 towards her house per month.

Total Amount

On a 30-year fixed loan with a 4.625% rate Jenny is able to spend $102,013.17 on her house.

Minimum Payment

The house Jenny chose cost $101,000 so her minimum monthly payment would be $519.28. If she pays this amount she will pay off her loan in the 30 years.

Increased Principle

Jenny's total cost would be $188,816.40 after paying off her loan. By increasing her monthly payment by 15% she would have a total cost of $163,815.67. By increasing her monthly payment it would save her approximately 7 years and $25,000.

Work Cited

Kaysen, R. (29 Aug. 2013). Buying a House: How Much Can You Afford?.