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
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.