There's No Place Like Home!

By Sophie Brown

Live Long and Property

With a salary of $21,000 (after taxes), a car payment of $400 a month, and a student debt of $20,000, Jenny had her work cut out for her to find a suitable home. Her total monthly expenses amounted to $1,240.16, making her eligible to potentially buy a house at $110,089.15. Jenny was smart and decided to not only shop for a new home below what she was able to afford, but also plan on paying more per month.
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"Lots" To Decide

If she were to increase her payment of $460.80 each month by 15%, she would be paying $529.92. From there, it would only take around 24 years to completely own her house as well as save her $15,793.46.

The Actual, Actual Amount

Loanception

The price of the house is $99,500. She is purchasing this house using an 800-10-10 structure. That means a first mortgage of 80% value on the home, a second mortgage of 10% and a downpayment of 10%.

First Loan:

($99,500)(.8)= $79,600


Second Loan:

($99,500)(.1)= $9,950


Downpayment In Cash:

an additional $9,950


Interest Rate for 1st Loan: 3.75% (found on Bankrate's website)

Interest Rate for 2nd Loan: 5.5% (found on Capital Federal's website)

References

True Blue® Lending - Browser Warning (True Blue® Lending - Browser Warning)

https://capfed.mortgagewebcenter.com/CheckRates



Average Utility Costs Per Month: What’s Normal? (Apartment Ratings)

http://ohmyapt.apartmentratings.com/breaking-down-the-average-utility-costs-per-month-whats-normal.html


Map (Listing Search Form)

http://www.reecenichols.com/Listing/ListingSearch.aspx