The Jellybean Jenny House
PreCalc Finance Project Scenario
Jenny the Bank teller
Jenny can afford $936.58 each month to pay for a mortgage. This $936.58 represents 50% of her net income of $1873.17 after paying her $230.16 for her student loans and taking away 30% for taxes from her gross annually salary of $40,000. I believe 50% of her net income is enough to cover all other miscellaneous expenses (i.e. food, entertainment, insurance, utilities, etc.).
The Actual House
Jenny can afford to borrow $184,197.90 if she spends the entire $936.58 per month for a 30-year fixed mortgage using the current Kansas City average of 4.53% annual interest.
The current Kansas City average is 4.53% annual interest for a 30-year fixed mortgage.
The minimum payment required each month would be $936.58 but this includes principle payments.
If Jenny increased her monthly payment to $1077.07 ($936.58 * 1.15), she would reduce her payment by 7 years (275.3010142 payments instead of the full 360 payments) and she would save $40,650.34 in interest ($337,168.80 - $296,518.46 note below).
Note: $936.58 * 360 payments = $337,168.80 and $1077.07 * 275.3010142 payments = $296,518.46
The Living Room
Sweet Sweet Home with a touch of time
The Kitchen Office
The many places easy to work at
The Guest Room
A comfortable space for just about anyone