Searching for My New Home

By: Macy Dodd

Scenario One

With only a $60,000 salary, $450 car payment, and 30% of my salary being taxes I've finally found a good price on a house that i could afford. I chose a house in Overland Park that was priced at $355,000.

How I Got My Loans

I used Bank of America for my loans. The 15 year loan was at an interest rate of 3.875% and the 30 year interest rate was 4.625%

(15 year loan) 355000= R (1-(1+.3875/12)^12*15)

__________________________________.3875/12 ___________________________R= $2603.71

(30 year loan) 355000= R (1-(1+.4625/12)^12*30)

__________________________________.4625/12_________________________R= $1825.20

If I chose the 15 year loan instead of the 30 year loan I will save 15 years of payment and I will save $188404.20

My Salary

My yearly salary starting off is $60,000 and monthly is $5000.

After paying taxes and my car payment I now have $36600 as my yearly salary and $3050 as my new monthly payment. With each payment on the house I have enough money to pay the mortgage and I have extra money left over for food and any other bills I may have.