Finance Project Scenario 3

Paige Breyfogle Hour 5

Income

$30,000 per year

15% income tax

$25,500 per year after taxes

$2,125 per month

Monthly Costs

$230.16 ~ student loans

$400 ~ car payments

$113 ~ car insurance

$375 ~ food

$75 ~ phone

$64.50 ~ gas

$200 ~ utilities

$50 ~ clothes

$200 ~ entertainment

Leftover Per Month

$417.34

House

10100 W 96th St APT D, Overland Park, KS 66212

$68,000

Mortgage: $319.76 per month for 30 years

Pay $115,114 overall

No down payment

House

Loan

Interest rate for a 30 year fixed loan:
3.875%
-Wells Fargo, 2-15-2016

First Year Amortization

Month Payment Interest Principal Balance

1 $319.76 $219.58 $100.18 $67,899.82

2 $319.76 $219.26 $100.50 $67,799.32

3 $319.76 $218.94 $100.83 $67,698.49

4 $319.76 $218.61 $101.15 $67,597.34

5 $319.76 $218.28 $101.48 $67,495.87

6 $319.76 $217.96 $101.81 $67,394.06

7 $319.76 $217.63 $102.13 $67,291.92

8 $319.76 $217.30 $102.46 $67,189.46

9 $319.76 $216.97 $102.80 $67,086.67

10 $319.76 $216.63 $101.13 $66,983.54

11 $319.76 $216.30 $103.46 $66,880.08

12 $319.76 $215.97 $103.79 $66,776.28

Increasing Monthly Payment By 15%

Payment of $367.73 per month
Finish paying 6 years and 6 months early
Pay only $103,693 overall
Pay $11.421 less overall

Citations

10100 W 96th St APT D, Overland Park, KS 66212 | MLS #1973575 | Zillow. (n.d.). Retrieved February 16, 2016, from http://www.zillow.com/homes/for_sale/Overland-Park-KS/pmf,pf_pt/condo_type/75563971_zpid/40202_rid/any_days/pricea_sort/39.142044,-94.360542,38.690601,-95.008736_rect/10_zm/?3col=true

2016 Tax Brackets. (n.d.). Retrieved February 16, 2016, from http://taxfoundation.org/article/2016-tax-brackets

Wells Fargo Personal. (n.d.). Retrieved February 16, 2016, from https://www.wellsfargo.com/