Pre-Calc Finance Project

By Blake Mullinax Situation 1

Finding the Monthly Payment

After figuring in rationale such as utilities, food, gas, entertainment, and insurance along with taxes, Brent comes away with $1,559.35. Taxes bring his salary down to $2,916.67 per month. Rationale, including the car payment, costs $1,357.32.

Picking the right house

Financing

After figuring out the highest house Brent could buy was in the $330,000 range, I decided to go with a house that costs $275,000. Brent saves a lot of money and gets an appropriate amount of space for himself. The monthly payment now costs $1,293.34. Brent will now pay just under $200,000 in interest for his house.

What if the monthly payment increases 15%?

If Brent increases his monthly payment by 15%, he ends up paying $194.09 more per month, but saves 6 and 1/2 years on his mortgage payment. Another added benefit is paying $46,193.04 less on his mortgage overall.

1st Year Amortization Table

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Citations

FIND YOUR HOME. (2015, November 11). Retrieved February 15, 2016, from http://www.reecenichols.com/

Welcome to Bankrate. (n.d.). Retrieved February 5, 2016, from http://www.bankrate.com/