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.