Finance Project Scenario 1

My Life

I am a construction foreman who earns \$50,000 annually. I purchased a \$23,000 car with a 6.50% 5 year car loan. My total monthly expenses, including my monthly car payment, totals to \$1,286.51. Therefore, my monthly budget for a house is \$1,630.15. I can afford a \$329,799.99 house with my budget. I found a house at \$247,000 at a 4.29% interest rate to pay in 30 years. My monthly house payment will be \$1,220.88. Over the course of the loan I will pay \$439,517.71, in which \$239,517.71 is interest.

My House

I found a house at \$247,000 at a 4.29% interest rate to pay in 30 years. My monthly house payment will be \$1,220.88. Over the course of the loan I will pay \$439,517.71, in which \$192,517.71 is interest. If I increased my monthly payment by 15% (My new payment would be \$1,404.01) I would save...

14 years on my loan payment

and \$280,015.75

Citations

Average Cost of Insurance: Car, Home, Renters, Health, and Pet (2015) (ValuePenguin)

Americans Spend \$151 a Week on Food; the High-Income, \$180 (Gallup.com)

Average Utility Costs Per Month: What’s Normal? (Apartment Ratings)

http://ohmyapt.apartmentratings.com/breaking-down-the-average-utility-costs-per-month-whats-normal.html

Prepaid Phones and No Contract Phones | NET10 Wireless (NET10 Wireless)

http://www.net10wireless.com/?utm_source=IMM&utm_medium=cpc&utm_campaign=AWS&utm_content=Base_Core&utm_term={keyword}#/plans

U.S. Energy Information Administration - EIA - Independent Statistics and Analysis (U.S. household gasoline expenditures in 2015 on track to be the lowest in 11 years)

AT&T Internet Service - High Speed Internet Providers (AT&T Internet Service - High Speed Internet Providers)

https://m.att.com/shopmobile/internet.html

12220 Oakmont St Overland Park, KS 66213 (realtor.comÂ®)