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
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
- Principle& Interest-$609 Principal-$122 Interest-$283 Principle Remaining-$84,878
- Principle& Interest-$609 Principal-$123 Interest-$283 Principle Remaining-$84,755
- Principle& Interest-$609 Principal-$123 Interest-$283 Principle Remaining-$84,631
- Principle& Interest-$609 Principal-$124 Interest-$282 Principle Remaining-$84,508
- Principle& Interest-$609 Principal-$124 Interest-$282 Principle Remaining-$84,384
- Principle& Interest-$609 Principal-$125 Interest-$281 Principle Remaining-$84,259
- Principle& Interest-$609 Principal-$125 Interest-$281 Principle Remaining-$84,134
- Principle& Interest-$609 Principal-$125 Interest-$280 Principle Remaining-$84,009
- Principle& Interest-$609 Principal-$126 Interest-$280 Principle Remaining-$83,883
- Principle& Interest-$609 Principal-$126 Interest-$280 Principle Remaining-$83,757
- Principle& Interest-$609 Principal-$127 Interest-$279 Principle Remaining-$83,630
- 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/