Jenny's First Home
By Anika Rasheed
What Can Jenny Afford?
30% of Jenny's income will go toward taxes. This means she has $28,000 left for every other expense.
She has to divide $28,000 by 12 months to find how much money she has per month. She has $2333.33.
Then, she has to subtract her monthly car and student loan payments to find how much she has left for all other expenses, including a house payment. After this, she has $ 1873.16
Increased Principle by 15% Comparison
If Jenny increased her monthly payment of $423.34 by 15%, it would become $486.85.
Instead of 30 years to pay off her loan, Jenny would pay it off in 22 years and 11 months. She would shave 7 years and 1 month off her loan time.
With the original monthly payment, Jenny would have ended up paying $152,402.40 total. With an 15% increased principle, she would have ended up paying $133,567.30. She would save $18,835.11 by doing this.
Mortgage: Buy A Home (2014) Retrieved from https://www.bankofamerica.com/home- loans/mortgage/overview.go
5716 Metcalf Court (2013) Retrieved from http://www.reeceandnichols.com/homes-for-sale/KS/Overland-Park/66202/5716-METCALF-Court-102849383