# Finace Project

## Maximum Monthly Mortgage

Banks do not like to give out loans that exceed 36% of a person's total income.
Total Income: \$50,000
\$50,000 / 12 = \$4,166
\$4,166 * .36 = \$1,500
Car Payment + Mortgage < \$1,500
\$450 + Mortgage < \$1,500
Mortgage < \$1,050

## Maximum Affordable Loan

All calculations are shown for a single month.

Income - Tax calculations: (\$50,000 * .75) / 12

Income - taxes: 3125

Car payment: 450

Food: 300

Car gas: 100

Car insurance: 250

Water: 30

Electric: 125

House gas: 30

Internet: 150

Cell phone: 45

Entertainment: 200

Home repairs: 75

Expenses: 1755

Max mortgage: 1370

This shows that \$1,050 will be able to fit into my budget.

I used Capitol Federal's website to find an APR of 3.938% for a 30 year loan.

Using the finance app on my calculator, I found that the max loan I can take out is about \$202,000.

## My House

I found this house at www.reecenichols.com. It has an asking price of \$195,000 which is well inside my budget. Using this as the loan I take out, the monthly payment would be \$1,014.

Address: 2049 W 139th Terrace, Leawood Kansas, 66224

## Increased Payment

\$1,014 * 1.15 = \$1,166

Using this as the monthly payment, the number of payments is reduced to 273, which is just under 23 years.

\$1,014 as the monthly payment = \$365,040 total paid

\$1,166 as the monthly payment = \$321,816 total paid

This would save you \$43,224 by the time you fully paid off the loan.

## References

Your Financial Goals. (n.d.). Retrieved March 26, 2015, from http://www.capfed.com/content/site/en/home.html

2049 W 139th Terrace, Leawood, KS | MLS 1924053 | Listing Information. (2011, June 29). Retrieved March 26, 2015, from http://www.reecenichols.com/homes-for-sale/2049-W-139th-Terrace-Leawood-KS-66224-143767586