Brent's House

by Alexandra Miller

Budget

Monthly Salary: $4166.66

After tax: $2909.66

401k funds are tax-deductible.


Food
- $200/month

My family spends ~$150/ week for four people. Less than $50 seems unreasonable based on food prices.

Car - $450.03/month

Gas - $100/month

A larger car, typical of a construction foreman, holds ~15 gallons. Construction foremen drive around a lot (my dad was one for years) and so refuel about 5 times a month. Gas has been hovering around $1.30 for a while, last I checked it was $1.33 at Costco.

Car Insurance - $60/month

Car insurance is ~$350/semester for a young man with a large car.

Utilities - $135/month

The average American household pays $40-50/month on water and $50-60/month on electricity as of 2014. AT&T used to provide internet.

http://www.attsavings.com/internet.html

Cell Phone - $43/month

AT&T

http://www.attsavings.com/wireless-phone

Entertainment - $80/month

DirecTV used to provide cable. Eating out for a family of four averages $50/night. For one person, once a week, that's $50/month. Brent reads in his downtime, the library is free.

http://www.attsavings.com/directv

401k - $100/month

Emergency - $500/month

If unused, added to savings.



Brent still has $1341.63/month.

Interest Rate

Wells-Fargo on February 15, 2016


3.750%

Big image
Cost: $135,000


Down Payment (10%) - $13,500

Minimum Monthly Payment - $562.69


If Monthly Payment were increased by 15% to $647.10, Brent could reduce his payment time from 30 to 23 years and 8 months. The total amount paid could be reduced from $202568.40 to $183776.40. Brent can afford to do this.

Amortization Table

Big image