Finance Paper
Green0518
Projectslideex.pptx101 Goldenwood Drive, Slidell
Group 1: Alexander, Bender, and Boyapally
How much house can I afford?
Income: $35,000 per year
$ 2,916 monthly
No debt payments!!!
Homeowner’s Insurance and taxes estimated at $3800 per year
I can afford to pay about $ 733 max per month for my mortgage, and my house can cost up to
$ 187,000.
http://www.bankrate.com/calculators/mortgages/new-house-calculator.aspx
2
Slidell, Louisiana
3
45 minutes to downtown New Orleans and the airport
3 bridges: Twinspan, HWY 11, HW90 to New Orleans
Big interstate cross to escape hurricanes
20 minutes to Stennis Space Center or Michoud
30 minutes to the Mississippi Gulf Coast
Amateur theatre
Public boat ramps and beach
3 public parks for fitness and fun
Greater Slidell has a population of about 90,000
Amtrak's daily Crescent train connects Slidell with New York City, Washington D.C., and Atlanta
Willow Wood Neighborhood
4
Schools
Excellent Public Schools, all rated 8 and 9 out of ten
Elementary to High School all reachable by car in 5 minutes
Within walking distance:
2 Supermarkets
3 Gas stations, 2 Autoparts stores, 1 Car shop
Several doctors offices, Ochsner Northshore
Several restaurants (Vietnamese, Italian, American, …
Pharmacies
Selfstorage, Hairdresser, Bank
Public Playground
2 Hospitals 5 and 10 minutes by car
101 Goldenwood Drive
5
Mother-In-Law Suite:
I can rent that out, if I need
the money (separate entrance)
1,892 square feet home with 4 bedrooms and 3 baths, completely remodeled
5
FIN 3300 Summer 2015
101 Goldenwood Drive
6
Open floor plan
Kitchen: New tile and laminate flooring, New stainless appliances,
New cabinets, and
granite countertops
Bathroom:
Handicapped-accessible shower, New tile tub surrounds, New cabinets, and granite countertops
6
FIN 3300 Summer 2015
101 Goldenwood Drive
7
7
FIN 3300 Summer 2015
Interest Rate for 30 Year fixed
8
I will borrow the 20% down payment = $36,000
for my $180,000 house at 0% interest rate from
my parents.
On bankrate.com I found that HSBC Bank USA
will lend me $144,000 at an interest rate of
R = 4.08%, if I have an excellent credit score
of 740 or more and do not buy any points
(prepaid interest).
Monthly Mortgage Payment
9
Financial Calculator:
N = 360
i/y = 4.08/12 = 0.34
PV = 144,000.00
FV = 0.00
Compute Payment
PMT = -$694.136 =>
Monthly Payment of
$694.14
First Month: $489.60 in interest $204.54 towards principal
24th Month: $472.99 in interest $221.14 towards principal
http://www.bankrate.com/calculators/mortgages/mortgage-calculator.aspx
The First Two vs. the Last Two Years
10
336th Month: $ 56.46 in interest $637.68 towards principal
348th Month: $ 32.20 in interest $661.94 towards principal
Interest and Principal over Time
Principal and Interest portions of monthly payments
Total interest payment over 30 years for $144,000 loan:
$$$105,887.58.
Interest 489.60000000000008 488.90456399999999 488.2067635176 487.50659051355984 486.80403692130591 486.09909464683841 485.39175556863773 484.68201153757104 483.96985437679876 483.25527588167984 482.53826781967763 481.81882193026451 481.09692992482741 480.37258348657184 479.64577427042622 478.9164939029456 478.18473398221568 477.45048607775522 476.7137417304196 475.97449245230308 475.23272972664086 474.48844500771139 473.74162972073765 472.99227526178817 472.24037299767832 471.48591426587035 470.72889037437432 469.96929260164717 469.20711219649274 468.44234037796087 467.67496833524598 466.90498722758576 466.13238818415965 465.35716230398572 464.57930065581922 463.798794278049 463.01563417859438 462.2298113348017 461.44131669333996 460.65014117009736 459.85627565007559 459.05971098728588 458.26043800464259 457.45844749385839 456.65373021533748 455.84627689806968 455.03607823952308 454.22312490553742 453.40740753021629 452.58891671581904 451.76764303265287 450.94357701896382 450.11670918082831 449.28702999204307 448.4545298940161 447.61919929565573 446.78102857326098 445.9400080704101 445.09612809784949 444.24937893338216 443.39975082175562 442.54723397454967 441.69181857006311 440.83349475320136 439.97225263536217 439.1080822943224 438.24097377412312 437.37091708495512 436.49790220304402 435.62191907053437 434.74295759537421 433.86100765119841 432.97605907721248 432.08810167807502 431.19712522378046 430.30311944954133 429.40607405566976 428.50597870745906 427.60282303506443 426.69659663338365 425.78728906193714 424.87488984474771 423.95938847021989 423.04077439101866 422.11903702394807 421.19416574982955 420.26614991337891 419.33497882308444 418.4006417510829 417.46312793303656 416.52242656800894 415.57852681834015 414.63141780952247 413.68108863007495 412.7275283314172 411.77072592774402 410.81067039589834 409.84735067524434 408.8807556675402 407.91087423680983 406.93769520921501 405.96120737292637 404.98139947799427 403.99826023621949 403.01177832102263 402.02194236731407 401.02874097136288 400.03216269066553 399.03219604381383 398.02882951036281 397.02205153069804 396.01185050590243 394.99821479762255 393.98113272793444 392.96059257920939 391.93658259397876 390.90909097479829 389.87810588411259 388.8436154441186 387.80560773662859 386.76407080293319 385.71899264366311 384.67036121865158 383.61816444679499 382.5623902059142 381.5030263326143 380.44006062214521 379.37348082826048 378.30327466307659 377.22942979693107 376.15193385824062 375.07077443335862 373.98593906643208 372.89741525925797 371.80519047113944 370.70925211874129 369.609587575945 368.50618417370328 367.39902919989385 366.28810989917343 365.17341347283065 364.05492707863829 362.93263783070574 361.80653279933011 360.67659901084784 359.54282344748475 358.40519304720618 357.26369470356667 356.11831526555875 354.96904153746169 353.81586027868906 352.65875820363658 351.49772198152891 350.33273823626615 349.16379354626946 347.99087444432672 346.81396741743742 345.63305890665674 344.44813530693932 343.25918296698296 342.06618818907071 340.86913722891353 339.66801629549184 338.4628115508965 337.25350911016955 336.04009504114413 334.82255536428403 333.60087605252261 332.3750430311012 331.14504217740694 329.91085932081012 328.67248024250085 327.4298906753254 326.18307630362148 324.93202276305379 323.67671564044821 322.41714047362575 321.15328275123608 319.88512791259029 318.61266134749314 317.3358683960746 316.05473434862125 314.76924444540657 313.4793838765209 312.18513778170109 310.88649125015894 309.58342932040944 308.27593698009883 306.96399916583113 305.64760076299495 304.32672660558916 303.0013614760482 301.67149010506677 300.33709717142403 298.99816730180686 297.65468507063298 296.30663499987315 294.95400155887273 293.59676916417288 292.23492217933108 290.86844491474079 289.4973216274509 288.12153652098425 286.74107374515557 285.35591739588909 283.96605151503513 282.57146009018624 281.17212705449288 279.76803628647815 278.35917160985218 276.94551679332568 275.52705555042297 274.10377153929443 272.67564836252797 271.24266956696056 269.8048186434882 268.36207902687607 266.91443409556746 265.46186717149243 264.00436151987543 262.54190034904303 261.07446681022981 259.60204399738456 258.12461494697567 256.64216263779537 255.15466999076389 253.6621198687325 252.16449507628622 250.66177835954556 249.153952405968 247.6409998441483 246.12290324361842 244.59964511464673 243.07120790803654 241.53757401492388 239.99872576657461 238.45464543418097 236.90531522865717 235.35071730043458 233.79083373925607 232.22564657396956 230.65513777232101 229.0792892407469 227.49808282416544 225.91150030576762 224.31952340680724 222.72213378639037 221.11931304126412 219.51104270560441 217.89730425080347 216.27807908525619 214.65334855414608 213.02309393923017 211.38729645862352 209.74593726658284 208.09899745328926 206.44645804463042 204.78830000198215 203.1245042219889 201.45505153634363 199.77992271156722 198.09909844878655 196.41255938351244 194.7202860854164 193.02225905810678 191.31845873890435 189.60886549861664 187.89345964131192 186.1722214040924 184.44513095686628 182.71216840211966 180.97331377468686 179.22854704152078 177.47784810146197 175.72119678500692 173.95857285407598 172.18995600177982 170.41532585218587 168.63466196008332 166.84794381074758 165.05515081970412 163.2562623324911 161.45125762442157 159.64011590034463 157.82281629440578 155.99933786980679 154.16965961856411 152.33376046126725 150.49161924683554 148.64321475227482 146.78852568243252 144.9275306697528 143.06020827402995 141.18653698216164 139.30649520790101 137.42006129160788 135.52721349999936 133.62793002589933 131.72218898798738 129.80996843054655 127.89124632321041 125.96600056070935 124.03420896261575 122.09584927308863 120.15089916061713 118.19933621776323 116.24113796090363 114.27628182997069 112.30474518819257 110.32650532183243 108.34153943992665 106.3498246740224 104.35133807791408 102.34605662737899 100.33395721991208 98.315016674459784 96.289211731152946 94.256519051038879 92.216915215812421 90.17037672754617 88.116880008419841 86.056401400448465 83.988917165209998 81.914403483571718 79.832836455415844 77.744192099364255 75.648446352502091 73.545575070100597 71.435554025338945 69.318358909025093 67.193965329315787 65.062348811435456 62.923484797394345 60.77734864570548 58.623915631100878 56.463160944246617 54.295059691457055 52.119586894408002 49.936717489848995 47.746426329314481 45.548688178834148 43.343477718642184 41.13076954288556 38.910538159331374 36.682757989073103 34.447403366235953 32.204448537681152 29.953867662709268 27.695634812762481 25.429723971125878 23.1561090326277 20.874763803338634 18.585662000269988 16.288777251070904 13.984083093724545 11.671552976243207 9.3511602563624354 7.0228782012340671 4.6866799871182634 2.3425386990744657 principal 204.53999999999991 205.23543599999999 205.93323648239999 206.63340948644014 207.33596307869408 208.04090535316158 208.74824443136225 209.45798846242894 210.17014562320122 210.88472411832015 211.60173218032236 212.32117806973548 213.04307007517258 213.76741651342815 214.49422572957377 215.22350609705438 215.95526601778431 216.68951392224477 217.42625826958039 218.1655075476969 218.90727027335913 219.6515549922886 220.39837027926234 221.14772473821182 221.89962700232167 222.65408573412964 223.41110962562567 224.17070739835282 224.93288780350724 225.69765962203911 226.46503166475401 227.23501277241422 228.00761181584033 228.78283769601427 229.56069934418076 230.34120572195098 231.1243658214056 231.91018866519829 232.69868330666003 233.48985882990263 234.2837243499244 235.0802890127141 235.87956199535739 236.6815525061416 237.48626978466251 238.29372310193031 239.10392176047691 239.91687509446257 240.7325924697837 241.55108328418095 242.37235696734712 243.19642298103616 244.02329081917168 244.85297000795691 245.68547010598388 246.52080070434425 247.358971426739 248.19999192958988 249.0438719021505 249.89062106661783 250.74024917824437 251.59276602545032 252.44818142993688 253.30650524679862 254.16774736463782 255.03191770567759 255.89902622587687 256.76908291504486 257.64209779695597 258.51808092946561 259.39704240462578 260.27899234880158 261.1639409227875 262.05189832192497 262.94287477621953 263.83688055045866 264.73392594433022 265.63402129254092 266.53717696493555 267.44340336661634 268.35271093806284 269.26511015525227 270.18061152978009 271.09922560898133 272.02096297605192 272.94583425017044 273.87385008662108 274.80502117691555 275.73935824891709 276.67687206696343 277.61757343199105 278.56147318165984 279.50858219047751 280.45891136992503 281.41247166858278 282.36927407225596 283.32932960410164 284.29264932475564 285.25924433245979 286.22912576319015 287.20230479078498 288.17879262707362 289.15860052200571 290.14173976378049 291.12822167897735 292.11805763268592 293.11125902863711 294.10783730933446 295.10780395618616 296.11117048963717 297.11794846930195 298.12814949409756 299.14178520237743 300.15886727206555 301.1794074207906 302.20341740602123 303.2309090252017 304.2618941158874 305.29638455588139 306.3343922633714 307.3759291970668 308.42100735633687 309.46963878134841 310.52183555320499 311.57760979408579 312.63697366738569 313.69993937785478 314.7665191717395 315.83672533692339 316.91057020306891 317.98806614175936 319.06922556664136 320.15406093356791 321.24258474074202 322.33480952886055 323.4307478812587 324.53041242405499 325.63381582629671 326.74097080010614 327.85189010082655 328.96658652716934 330.0850729213617 331.20736216929424 332.33346720066987 333.46340098915215 334.59717655251524 335.7348069527938 336.87630529643332 338.02168473444124 339.17095846253829 340.32413972131093 341.48124179636341 342.64227801847107 343.80726176373383 344.97620645373053 346.14912555567327 347.32603258256256 348.50694109334324 349.69186469306067 350.88081703301702 352.07381181092927 353.27086277108646 354.47198370450815 355.67718844910348 356.88649088983044 358.09990495885586 359.31744463571596 360.53912394747738 361.76495696889879 362.99495782259305 364.22914067918987 365.46751975749913 366.71010932467459 367.95692369637851 369.20797723694619 370.46328435955178 371.72285952637424 372.98671724876391 374.25487208740969 375.52733865250684 376.80413160392538 378.08526565137873 379.37075555459342 380.66061612347909 381.9548622182989 383.25350874984105 384.55657067959055 385.86406301990115 387.17600083416886 388.49239923700503 389.81327339441083 391.13863852395178 392.46850989493322 393.80290282857595 395.14183269819313 396.48531492936701 397.83336500012683 399.18599844112725 400.5432308358271 401.90507782066891 403.27155508525919 404.64267837254908 406.01846347901574 407.39892625484441 408.78408260411089 410.17394848496485 411.56853990981375 412.96787294550711 414.37196371352184 415.7808283901478 417.19448320667431 418.61294444957701 420.03622846070556 421.46435163747202 422.89733043303943 424.33518135651178 425.77792097312391 427.22556590443253 428.67813282850756 430.13563848012456 431.59809965095695 433.06553318977018 434.53795600261543 436.01538505302432 437.49783736220462 438.98533000923612 440.47788013126751 441.97550492371374 443.47822164045442 444.98604759403202 446.49900015585172 448.01709675638153 449.54035488535328 451.06879209196347 452.60242598507614 454.14127423342541 455.68535456581901 457.23468477134281 458.78928269956543 460.34916626074391 461.9143534260304 463.48486222767895 465.06071075925308 466.64191717583458 468.22849969423237 469.82047659319278 471.41786621360961 473.02068695873584 474.6289572943956 476.24269574919651 477.86192091474379 479.48665144585391 481.11690606076979 482.75270354137649 484.39406273341717 486.04100254671073 487.6935419553696 489.35169999801781 491.01549577801109 492.68494846365638 494.36007728843276 496.04090155121344 497.72744061648757 499.41971391458355 501.1177409418932 502.8215412610956 504.53113450138335 506.24654035868809 507.96777859590759 509.69486904313374 511.4278315978803 513.16668622531313 514.91145295847923 516.66215189853801 518.41880321499309 520.18142714592398 521.95004399822017 523.72467414781408 525.50533803991664 527.29205618925243 529.08484918029581 530.88373766750885 532.68874237557839 534.49988409965533 536.31718370559418 538.14066213019316 539.9703403814359 541.80623953873271 543.64838075316447 545.49678524772514 547.35147431756741 549.21246933024713 551.07979172597004 552.95346301783832 554.83350479209901 556.71993870839208 558.61278650000065 560.51206997410065 562.41781101201263 564.33003156945347 566.24875367678953 568.17399943929058 570.10579103738428 572.04415072691131 573.9891008393829 575.9406637822367 577.89886203909634 579.8637181700293 581.83525481180743 583.81349467816756 585.79846056007329 587.79017532597754 589.78866192208591 591.79394337262102 593.80604278008786 595.82498332554019 597.85078826884705 599.88348094896105 601.92308478418761 603.96962327245387 606.02311999158019 608.08359859955158 610.15108283479003 612.22559651642825 614.30716354458411 616.39580790063576 618.49155364749788 620.59442492989933 622.70444597466098 624.82164109097494 626.94603467068418 629.07765118856457 631.21651520260559 633.36265135429448 635.5160843688991 637.67683905575336 639.84494030854296 642.02041310559196 644.20328251015098 646.39357367068556 648.59131182116585 650.79652228135785 653.00923045711443 655.22946184066859 657.45724201092685 659.69259663376408 661.93555146231881 664.1861323372907 666.44436518723751 668.71027602887409 670.9838909673723 673.26523619666136 675.55433799973002 677.8512227489291 680.15591690627548 682.46844702375677 684.7888397436376 687.11712179876588 689.4533200128817 691.79746130092553 payment 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14 694.14
