Johnson County Living

Scenario #1

Brent's Housing

Brent has a salary $50,000 a year salary and paying off a $23,000 car with no student loans. After all monthly expenses, Brent has $1,622.17 left over and was able to purchase a nice $335,715.12 house with a 4.1% interest rate over 30 years in Johnson County at only 24. To not go over his monthly budget, he decided to buy a home at $300,000 where the minimum payment is $1449.63 per month.
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Brent's Monthly Expenses

After taxes, each month Brent makes $2,916.67. All of his expenses of food, car insurance, car payments, utilities, cell phone bill, gas, and entertainment add up to $1,294.50 a month, leaving him with $1,622.17 each month to put towards a new house.

Increasing the Monthly Payment

Brent wanted to increase his monthly home payment to be able to pay it off faster and pay less money in interest. If he increased his payment by 15% to $1667.07 a month, he would pay off the home in 23 years and 4 months. By doing this, he would be paying $165,712.68 in interest instead of $221,866.80, saving him $56,154.12.
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References

Jansen, K. (2015). 7879 W 155th Terrace, Overland Park, KS 66223 (MLS # 1965273) - Johnson County Home Report. Retrieved December 10, 2015, from http://www.johnsoncountyhomereport.com


(2015). Compare Insurance Costs. Retrieved December 10, 2015, from http://quotewizard.com/


Kane, Libby. (2015, Jan. 12). Business Insider. Retrieved from http://www.businessinsider.com/


(2015). Monthly Phone Bill. Retrieved from http://www.investopia.com/


(2015). Average Cost of Gas Per Month. Retrieved from http://www.inflationdata.com/


C., Alex. (2012, Aug. 9) How Much Should You Plan for Utilities. Retrieved from http://www.myfirstapartment.com/

(2015, Dec. 10). Mortgage Rates Today. Retrieved from http://www.bankrate.com/