Pre Calc Finance Project Hour Six

Scenario One- Maiya Focht

Calculations explained

Based on the present value equation to the right, I was able to determine that I can afford a house that is priced at $236,662.83. This was after factoring in a monthly car loan of $450.02, rough monthly budget of $1160, and net monthly income of $2916.67. This also means that I would be able to afford a house with a minimum monthly payment of up to $1306.64 after mortgage has been approved.

Factors of monthly budget

car insurance- $60

food: $250

electricity (utilities)-$120

transportation/entertainment: $550

natural gas (utilities)- $150

cellphone- $30

Mortgage Interest Rate of 5.25% from Wells Fargo

Amortization Table Below

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Monthly Payment Increase

If monthly payment was increased by 15% to 1502.63, I would be able to pay off the house in ten years, or 120 payments, which is 20 years (or 240 payments) less than the original equation. This would save me roughly $116709.83.