Create a folder in your drive and name it Buying a Home - place all files for this project into this folder.
First you need to determine your budget and how much money you have left over to make a house payment each month.
Assignment 1: Create a new Google Spreadsheet and name it Budget. Use the following information to complete your budget.
A sample is in your shared student folder for you to follow formatting. You will need to add an expense for savings and then what is left will be what you have available to use for a house payment.
Remember to use the sum function to total columns and then subtract to find what is left.
Salary: $5,416 monthly $85,000 - $20,000 taxes…. (yes really)= $65,000 take home pay or
Expenses
Car Payment:$500
Car Insurance:$90 (you are a good driver)
Fuel for Car: $100 (increase this amount if you choose a house with a commute of more than 20 minutes one way)
Food/Household: $700
Utilities:$400 (water, sewer, trash, electric, gas)
Student Loan Payment:$365
Clothing:$200
Entertainment:$100
Cell Phones: $150
Internet: $60
Cable/Satellite: $80
Misc: $100 (gifts, donations, etc.)
Savings: $700
Anything else you spend money on? Hobbies or habits?
Next, watch the video How to Calculate Your Monthly Payment. 3:00 min (Backup Link)
First you need to determine your budget and how much money you have left over to make a house payment each month.
Assignment 1: Create a new Google Spreadsheet and name it Budget. Use the following information to complete your budget.
A sample is in your shared student folder for you to follow formatting. You will need to add an expense for savings and then what is left will be what you have available to use for a house payment.
Remember to use the sum function to total columns and then subtract to find what is left.
Salary: $5,416 monthly $85,000 - $20,000 taxes…. (yes really)= $65,000 take home pay or
Expenses
Car Payment:$500
Car Insurance:$90 (you are a good driver)
Fuel for Car: $100 (increase this amount if you choose a house with a commute of more than 20 minutes one way)
Food/Household: $700
Utilities:$400 (water, sewer, trash, electric, gas)
Student Loan Payment:$365
Clothing:$200
Entertainment:$100
Cell Phones: $150
Internet: $60
Cable/Satellite: $80
Misc: $100 (gifts, donations, etc.)
Savings: $700
Anything else you spend money on? Hobbies or habits?
Next, watch the video How to Calculate Your Monthly Payment. 3:00 min (Backup Link)
After creating your budget determine how much of your income is available for a house payment. Remember that you will be adding in escrow for insurance and taxes and mortgage insurance (PMI) if you do not put down more than 20%. There is a box to check on zillow to add in these amounts, you do not have to calculate this.
Watch this short video explaining escrow. (Backup Link)
Watch this short video explaining escrow. (Backup Link)
Use this mortgage calculator to see how much house you can afford. You are able to put down $8,000. You will need to save the rest for closing costs. Leave insurance, interest rate, taxes and PMI as they are. Manipulate the loan value until you get to an acceptable amount for the monthly payment. Remember, you do not want to max-out your budget. Adjust your budget sheet and add in your acceptable max payment for your home. **You should have ended up with around $1900 for a payment.