# Jenny's First Home!

### Finance Project-Hour:2-Stein

## 9302 Slater St, Overland Park, KS 66212

## Monthly Amount

Jenny's annual salary after taxes is $28,000, so her monthly salary after taxes is $2333.33. After subtracting out each of the following monthly necessities, the amount of money per month that she can spend on her house payment per month is $939.84.

- Student Loans per month-$230.16 (A 200,000 dollar loan on a 6.8% interest rate and on a 10 year fixed rate)
- Car Payment per month- $230
- Food budget per month-$233.33 (10%)
- Clothing budget per month-$116.67 (5%)
- Savings for retirement per month- $233.33 (10%)
- Entertainment budget per month- $116.67 (5%)
- Monthly insurance-$233.33 (10%)

## Total Amount & Minimum Amount

Using the present value equation for the total amount (listed below) the value of a house that she could afford would be $187638.11 (When using a 4.402% interest rate.) She chose to buy a home that costs $155,000 though just so that she can have some extra money in case of an emergency. Also, her realtor was able to settle a deal in which no down payment is necessary.

The minimum monthly payment is $776.36. (Found using the minimum payment equation listed below when the interest rate is a 4.402%.)

## Increased Principle

When the minimum monthly payment ($776.36) is increased by 15%, the value payed per month increases to $1080.82.

When using this new monthly payment you would save 17 years and $117855.12. (equation listed below)

## APA Citations

Wiley, S. (December 13, 2013). *Zillow*. Retrieved from http://www.zillow.com/homedetails/9302-Slater-St-Overland-Park-KS-66212/75683038_zpid/.

Wiley, S. (December 13, 2013). 9302 Slater St, Overland Park, KS 66212. Retrieved from http://www.zillow.com/homedetails/9302-Slater-St-Overland-Park-KS-66212/75683038_zpid/.

No Author. (January 1, 2014). *Bank of America*. Retrieved from https://www.bankofamerica.com/home-loans/mortgage/mortgage-payment-calculator.go.