Pre Calc Finance Project

By Isaac Romig

Scenario One

Brent is a construction foreman who did not attend college. He is 24 years old, and earns an annual salary of $50,000. He just purchased a $23,000 car with a 6.50% 5 year car loan. He wants to buy his first home in the next few months.

List of Income and Expenses

Net income after taxes: $35,000

Car payment: $450.02

Expenses: $1308

Monthly Budget: $2916.67

House and Payments

House I can afford: $330,812.89

Purchased a house for: $275,000

APR: 4.153%


My monthly budget minus my expenses totaled to $1608.67. When I purchased a home for $275,000 at 4.153% interest at a 30 year loan my monthly payments will be $1337.26. Over the course of the 30 years I would be paying $206,413.60 in interest. If I increased my monthly payment by 15% it would be $1537.85 and the mortgage would be paid off in 23.25 years saving me 6.75 years and $52353.45 in interest.

If I bought a dog?

If I bought a Siberian Husky for $450 my expenses would total to $1758 and what is left of my monthly budget for the house would be $1158.67. I can no longer afford the original house for $275,000. I could afford a house for $238,273.22. If I bought a house for $238,000 then I could afford to make monthly payments of $1157.34. If I did buy a dog it would change my budget for each month.

Bibliography

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How Much Does a Siberian Husky Cost? | HowMuchIsIt.org. (n.d.). Retrieved December 9, 2015, from http://www.howmuchisit.org/siberian-husky-cost/

Mortgages - Home Mortgage Loans from Bank of America. (n.d.). Retrieved December 8, 2015, from https://www.bankofamerica.com/home-loans/mortgage/overview.go

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