The document discusses Neema Y. Smith's consideration of purchasing a condo for $250,000 with a $42,000 down payment. Some key details include:
- Neema is looking for a small, open condo in the city with large windows and interesting architectural features.
- The condo has 2 bedrooms and 2 bathrooms and is 1,000-1,300 square feet.
- With a 7% interest rate on the loan and making monthly payments of $1,691 over 25 years, the total paid including interest will be $246,504.47.
- As a graphic designer making $75,000 per year, Neema calculates their debt-to-
5. The Home 4620 Piedmont Row Drive #706D, Charlotte - South, NC 28210 Property Type: CONDO/TH List Price: $250,000
6.
7. Monthly Cost = $1,691 Interest Rate = 7% Down Payment = $42,000 25 yrs. Loan Term $50 Est. Home Insurance $258 Est. Property Taxes $1,330 Principal & Interest
10. ○ Ability to make payments? Salary = $75,000/year ○ After taxes (7.3% FICA) = $69,525 ○ Income/mo. = $5,793.75
11. ○ Ability to make payments? DEBT / INCOME - Debt/Income is the ratio of how much I have to pay and how much I am bringing in.
12.
13.
14. - I decide to use the money for a down payment. The more I pay at the get-go, the less time it will take for me to finish paying off the condo.
15. The amortization calendar I previously showed demonstrated the first 12 months of payment. After 25 years the total loan, including interest, will be paid off.