House Buying Project

by Jared Belzer scenario 2

Monthly Amount

The amount that Harper can afford should be around $700. This makes sense as after all of the budgeting she has about $3,819.82 left per month. This means if something unexpected happens or she needs money she will have about $3120 left over per month.

Monthly Budget (based on average single Americans)

Food- $300
Transportation- $325
Gas- $150
Insurance- $113
Utilities- $200
Phone- $100
Entertainment- $200
Student Loans- $400.51 (only for 10 years)
Car payment- $325

Total Amount

The house should be around $100000 because its her first house and she already has other loan payments to pay off so adding a large loan payment could be risky this early in her life. She also doesn't need that much space yet because she doesn't have a family

It's a 2 bed and 1 bath and is very affordable which is perfect for a first time home owner

Minimum Payment for 30 year $20,000 down

If you are doing a 30 year plan and put a down payment of $20,000 than Harper would pay $609 per month. The $20,000 down payment is so she can take a little off of her loan without having to spend a lot more in the long run.

Increase of 15% to $700.35

If you increase the payment by %15 you would save $58,388.21 on the house. It would also save you 10 years on the payment. It would also only increase the payment to $700.35 which is very affordable on Harper's salary. She would still have leftover money each month even with the 15% increase.

Amortization for Frist 12 Months $609

First 12 Months
  1. Principle& Interest-$609 Principal-$122 Interest-$283 Principle Remaining-$84,878
  2. Principle& Interest-$609 Principal-$123 Interest-$283 Principle Remaining-$84,755
  3. Principle& Interest-$609 Principal-$123 Interest-$283 Principle Remaining-$84,631
  4. Principle& Interest-$609 Principal-$124 Interest-$282 Principle Remaining-$84,508
  5. Principle& Interest-$609 Principal-$124 Interest-$282 Principle Remaining-$84,384
  6. Principle& Interest-$609 Principal-$125 Interest-$281 Principle Remaining-$84,259
  7. Principle& Interest-$609 Principal-$125 Interest-$281 Principle Remaining-$84,134
  8. Principle& Interest-$609 Principal-$125 Interest-$280 Principle Remaining-$84,009
  9. Principle& Interest-$609 Principal-$126 Interest-$280 Principle Remaining-$83,883
  10. Principle& Interest-$609 Principal-$126 Interest-$280 Principle Remaining-$83,757
  11. Principle& Interest-$609 Principal-$127 Interest-$279 Principle Remaining-$83,630
  12. Principle& Interest-$609 Principal-$127 Interest-$279 Principle Remaining-$83,503

APA Refrences

Bank of America

Bank of America — Banking, Credit Cards, Mortgages and Auto Loans. (n.d.). Retrieved February 09, 2016, from https://www.bankofamerica.com/


Zillow

Zillow: Real Estate, Apartments, Mortgages & Home Values. (n.d.). Retrieved February 09, 2016, from http://www.zillow.com/