Amazing house on Bluejacket St.!

4 bedrooms! 4.5 bathrooms!

Salary

Brent earns $50,000 annually.

Income Monthly:

$4,166.67

Expenses Monthly:

Car payment: $450

Car Insurance: $80

Gas: $100

Utilities: $300

Phone: $100

Food: $250

Entertainment: $500

Miscellaneous/saving: $500

Total: $2,280


Net Income Monthly:

$1,886.67

How much can Brent afford?

Brent has enough to afford a $413,696.88 house! He used the present value equation to figure out that he can afford a $413,696.88 house with his net monthly income of $1,886.67! He is going to be taking a 30-year mortgage for the house!


And even better news, The Bank of America has a 30-year fixed mortgage rate of 3.625% !(3/20/2015)

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The Perfect House!

Brent looked for a house in his price range and found the perfect house right on BlueJacket! It wasn't quite as much as he can afford. This beautiful house Brent has found is $412,400! Using the present value equation, he found out that for this house, it is going to cost him $1,880.76 a month, leaving him $5.91 left! :) Unfortunately, he is going to be paying a total of $677,073.60 after the 30-years, paying $264,673.60 more than the normal price.


1,880.76(12)(30)=$677,073.60

16005 BlueJacket St., Overland Park, KS 66062

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SAVING TIME AND MONEY?!

Brent is pondering whether to increase his monthly payment by 15% to save time and money. So he took his monthly payment of 1880.76 and multiplied it by 1.15, a 15% increase, to get $2,162.87. By increasing his monthly payment by 15%, he would save 6 years and 4 months, but more importantly she would save $60,655.65 by paying more each month! To get this, he used the present value equation to find for the value of months it would take. A 15% increase would definitely be worth the time and money!


2,162.87(285)= $616,417.95

677,073.60 - 616,417.95= $60,655.65 saved

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Brent's First Year Amortization

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Sources

ReeceNichols (2015, March 20). Retrieved March 20, 2015, from

http://www.reeceandnichols.com/homes-for-sale/16005-Bluejacket-Street-Overland

Park-KS-66062-121349642


Bank of America (2015, March 20). Retrieved March 20, 2015, from

https://www.bankofamerica.com/home-loans/mortgage/overview.go

By : Nick Choi

Mrs. Colwell

Hour 6