Affordable Housing Plan for Harper
Jackson Riley - Hour 6
Overview
Harper wants to buy a house in Johnson County. She makes $70,000 per year. She has $35,000 left in student loans that she needs to pay back in 10 years. She also has $325 car payment.
15968 S Chester Court, Olathe, KS, 66062
Loan Overview
The interest rate on the loan is 4.625% which in that case, Harper could afford to spend up to $300,000 for a home. The loan is also a 30 year fixed-rate loan.
Maximum Monthly Payment
With her current financial situation, Harper can afford to pay up to $1633.33 every month. This would take off 3.39 years off of her loan and save her $65,448.15.
Total Ammount Capable of Borrowing
She is capable of borrowing up to $588,000 in total from the bank to put towards her house. She will pay this off in 30 years if she pays the minimum price.
Minimum Possible Payment
If Harper purchases a $300,000 home, she has to make a payment of at least $1542.42 to pay off the 30 year loan in time.
Increased Principle
If Harper paid 15% more of what she paid per month, she would save $68,735.76 and take 7.14 years off of her loan. This means she would make a monthly payment of $1773.78. She would not be able to do this because her maximum payment is $1633.33.
Citations
Bankrate.com. (2012, July 23). How much house can you buy?. Retrieved from http://www.bankrate.com/finance/mortgages/how-much-house-can-you-buy--2.aspx
Is a new home in your future?. (n.d.). Retrieved from https://www.bankofamerica.com/home-loans/mortgage/overview.go
15968 s chester court olathe, ks 66062. (n.d.). Retrieved from http://www.reeceandnichols.com/Listing/ListingSearch.aspx?Search=2bf4d2c0-b809-4693-a628-c8d7e5dbec03&SearchType=&ListingType=&ListingDistrictTypeID=&FirstLetter=&Sort=6&view=