Pre-Calc Finance Project

Sruthi Jana

Scenario 2

Harper earns $70,000 but has a student loan of $35,000 and a monthly car payment of $325.

She can afford a monthly payment of $3647.22

She is also eligible to borrow $708,410.83 from the bank, since the interest rate for a 30 year fixed late loan is 4.625%

Harper can buy a house!

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Harper can finally buy a house! She decides to buy a $615,000 house in Overland Park.

Her monthly minimum mortgage payment would be $3161.96.

If she increased her payment by 15%, she would be paying a monthly mortgage payment of $3636.25. This could be beneficial to Harper, since it could save her $140,939.31 over time.

Increasing her monthly payment by 15% could also save her about 7.14 years on her 30 year mortgage.

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