You are married and you and your spouse are finally ready to purchase your first home

rather than throw

away money renting an apartment. You are working as an accountant making $75,000 per year
while your spouse is an elementary teacher making $40,000/per year. Calculate your gross income
, you both agree that you are willing to spend 25% of your income on housing.
Create the spreadsheet below and enter a pmt function to calculate monthly payments for houses
ranging from $150k to $270K.

Combined Yearly Income $115,000

BUYING YOUR FIRST HOME

NUMBER OF YEARS 15 Monthly Rate 20 Monthly Rate 25

INTEREST RATE 4.50% 4.50% 4.50%

PRINCIPAL VALUE:
150,000 $251,250.00 $1,395.83 $285,000.00 $1,583.33 $ 318,750.00
160,000 $268,000.00 $1,488.89 $304,000.00 $1,688.89 $ 340,000.00
170,000 $284,750.00 $1,581.94 $323,000.00 $1,794.44 $ 361,250.00
180,000 $301,500.00 $1,675.00 $342,000.00 $1,900.00 $ 382,500.00
190,000 $318,250.00 $1,768.06 $361,000.00 $2,005.56 $ 403,750.00
200,000 $335,000.00 $1,861.11 $380,000.00 $2,111.11 $ 425,000.00
210,000 $351,750.00 $1,954.17 $399,000.00 $2,216.67 $ 446,250.00
220,000 $368,500.00 $2,047.22 $418,000.00 $2,322.22 $ 467,500.00
230,000 $385,250.00 $2,140.28 $437,000.00 $2,427.78 $ 488,750.00
240,000 $402,000.00 $2,233.33 $456,000.00 $2,533.33 $ 510,000.00
250,000 $418,750.00 $2,326.39 $475,000.00 $2,638.89 $ 531,250.00
260,000 $435,500.00 $2,419.44 $494,000.00 $2,744.44 $ 552,500.00
270,000 $452,250.00 $2,512.50 $513,000.00 $2,850.00 $ 573,750.00

Combined Monthly Salary $9,583.33

1. Now based on a yearly combined salary of $?. What is your combined monthly salary?
2. Enter a formula (in C32) to calculate your combined monthly salary
3. Based on your combined monthly salary, how much can you finance in home value (principal value)
and not exceed your 25% limit for housing costs if you finance for 15 years? __________ $150,000.00
4. What amount can you finance is you choose to finance for 20 years? __________ $180,000
5. How does the amount change if you decide to finance for 30 years rather than 15 years? __________
Is this a better option? Why or why not? Explain your answer. You can gt the house, but you will have to pay longer
6. Look at houses on the market in Madison. Find 3 examples you might purchase in your price range and attach image and so
7. Create a chart using your financing information
8. Use a payment calculator to estimate your monthly payments
9. Use public records to find taxes on the property and add to the details of each property you choose
10. What would the total montly payments for each property be including interest and tax.
ESTIMATE
D
MONTHLY
Home price Home price
PAYMENT
$ $
195,000 475,000
Down Down
payment payment
$ $
39,000 95,000

20 20
% %
Loan term Loan term
15-year fixed 30-year fixed
Today's rate Today's rate
Interest rate Interest rate
3.119 3.905
 Monthly Rate 30 Monthly Rate
4.50%

Err:509 $ 352,500.00 $ 979.17 360

$ 1,133.33 $ 376,000.00 $ 1,044.44
$ 1,204.17 $ 399,500.00 $ 1,109.72 300
$ 1,275.00 $ 423,000.00 $ 1,175.00
$ 1,345.83 $ 446,500.00 $ 1,240.28
$ 1,416.67 $ 470,000.00 $ 1,305.56
$ 1,487.50 $ 493,500.00 $ 1,370.83
$ 1,558.33 $ 517,000.00 $ 1,436.11
$ 1,629.17 $ 540,500.00 $ 1,501.39
$ 1,700.00 $ 564,000.00 $ 1,566.67
$ 1,770.83 $ 587,500.00 $ 1,631.94
$ 1,841.67 $ 611,000.00 $ 1,697.22
$ 1,912.50 $ 634,500.00 $ 1,762.50

180
$ 9,583.33

28750

$30,000
but you will have to pay longer on the note.
ange and attach image and some details to the spreadsheet
 Home
475,000 price
$
281,000
Down
95,000 payment
$
20 56,200

20
30-year fixed %
Loan
term
15-year fixed
3.905 Today's rate
Interest
rate
3.905
You are married and you and your spouse are finally ready to purchase your first home rather than throw
away money renting an apartment. You are working as an accountant making $45,000 per year
while your spouse is an elementary teacher making $25,000/per year. Based on your gross income of
$70,000, you both agree that you are willing to spend 25% of your income on housing.
Create the spreadsheet below and enter a pmt function to calculate monthly payments for houses
ranging from $80k to $200K.

BUYING YOUR FIRST HOME

NUMBER OF YEARS 15 20 25 30
INTEREST RATE 7.50% 7.50% 7.50% 7.50%

PRINCIPAL VALUE:
80,000 $741.61 $644.47 $591.19 $559.37
90,000 $834.31 $725.03 $665.09 $629.29
100,000 $927.01 $805.59 $738.99 $699.21
110,000 $1,019.71 $886.15 $812.89 $769.14
120,000 $1,112.41 $966.71 $886.79 $839.06
130,000 $1,205.12 $1,047.27 $960.69 $908.98
140,000 $1,297.82 $1,127.83 $1,034.59 $978.90
150,000 $1,390.52 $1,208.39 $1,108.49 $1,048.82
160,000 $1,483.22 $1,288.95 $1,182.39 $1,118.74
170,000 $1,575.92 $1,369.51 $1,256.29 $1,188.66
180,000 $1,668.62 $1,450.07 $1,330.18 $1,258.59
190,000 $1,761.32 $1,530.63 $1,404.08 $1,328.51
200,000 $1,854.02 $1,611.19 $1,477.98 $1,398.43

Combined Monthly Salary ?

1. Now based on a yearly combined salary of $70,000. What is your combined monthly salary?
2. Enter a formula (in C32) to calculate your combined monthly salary
3. Based on your combined monthly salary, how much can you finance in home value (principal value)
and not exceed your 25% limit for housing costs if you finance for 15 years? __________
4. What amount can you finance is you choose to finance for 20 years? __________
5. How does the amount change if you decide to finance for 30 years rather than 15 years? __________
Is this a better option? Why or why not? Explain your answer.