Finance Project Scenario One
By Lexi Pudvan Hour 6
Brent's Financial Situation
30 Year Fixed Interest Rate: 4.625%
Maximum Affordable Price: $593,224.19
2657 W 146TH Terrace Leawood, KS 66224
Down Payment (10%): $40,700
Mortgage: $366,300
Financial Plans
Minimum Monthly Payment
Elapsed Time: 30 years
Total Money Spent: $677,984.40
$366,300= $1883.29* {[1-(1+.04625/12)^-360]/.04625/12}
$1883.29*360=$677,984.40
15% Increase in Monthly Payment
Elapsed Time: 22 years, 11 months
Total Money Spent: $594,051.80
$1883.29*1.15=$2165.78
N=2.742946/12=22.858 years= 22 years, 11 months
$2165.78*274.29 years=$594,051.80
Benefits of Larger Monthly Payment
Money Saved: $83, 932.60
30 years- 22 years, 11 months= 7 years, 1 month
$677,984.40-$594,051.80=$83,932.60
Citations:
December 23, 2013. Wells Fargo Home Mortage - Today's Rates. Retrieved from
https://www.wellsfargo.com/mortage/rates/?dm=DMIWFHPRAT
January 1, 2014. Reece and Nichols- Homes for Sale- Leawood, KS. Retrieved from http://www.reeceandnichols.com/homes-for-sale/KS/Leawood/66224/2657-W-146TH-Terrace-105246916#_