Costly Crib in OP!

Scenario 2: Harper

Monthly Budget

I make $70,000 a year, which equates to $5,833.33 per month. I used the equation below to find out that payments for my students loans would be $402.78/mo. I also have car payments of $325/mo. The following are estimates on other expenses in the budget:

Food - $750 ($25/day x 30)

Gas - $16 (at $1.50/gallon)

Car Insurance - $83 (2010 Honda Civic)

Cell Phone Bill - $50

Entertainment - $75 (I have lots of friends)

Savings - $400 (Almost 10% of income)

Taxes - $700 (I asked mom on this one)

Adding all of the expenses up gives me $2,800/mo. Subtract that from my income and I'm left with $3033.

Big image

The House

I found a house near BVN for $260,000 (Feb 15, 2016). After a 10% down payment of $26,000 (a gift from my parents) and an interest rate of 3.6%, a 30-year mortgage would have payments of $1,064/mo. This fits well within my budget and leaves room for property tax & home insurance - almost $400 more.

After all house payments I still have $1,589 a month to myself.

Big image
Big image
(Forgot to take off the 10% down payment in the table. Whoops)

The Big 15%

Monthly payments of $1,064 result in 30 years and $383,040 spent as the loan is paid off. However, just adding 15% onto the monthly payments make them $1,223.60. With this new plan, the loan can be paid off in almost 24 years and totals $348,285.50 spent, saving me $34,754.50 when the loan is paid off.