FINANCIAL PLAN-BUYING MY FIRST HOME
Objective – You and your Partner want to purchase your first home
Expected purchase date – September 2019
Data:
Projected Gross Income $ 60,000 each
Projected 5yr, guaranteed mortgage interest rate 4.50%
Expected down payment $ 25,000 each
Monthly Savings starting in Nov 2015 $ 100 per month
Using the Excel template provided and your HP BA11Plus Calculator, answer the questions and determine the maximum value
Question 1
if you started an investment plan in November 2015, saving $100 per month, earning 5%, how much would you have saved as
You plan on a monthly PAC to a balanced no-load mutual fund at your Bank.
$1,865.19
Question 2.
Building on your savings from Question 1, How much will you need to save monthly from June 2017 to September 2019 to acc
Question 3. $772.93
How much would you have to invest monthly starting in June 2017 to accumulate $25,000 in September 2019, assuming 5% g
if you did not start an investment plan today in Question 1.?
843.64
Question 4.
Your bank is willing to provide you and your spouse a mortgage to a maximum of 32% of your net take home earnings.
Using the schedule below and the mortgage calculator on page 2, detemime what value of a house you will be shopping for in
Gross Income $ 120,000
Approximate Net take home pay @70% $ 84,000
Maximum annual home Costs @32% TDSR $ 26,880
Maximum monthly paymemt $ 2,240
Maximum house value $ 380,000
Note: round house values to $500
Question 5
What value of a home could you shop for if you managed to save $15,000 each? $ 363,500
Question 6
What value of a home could you shop for if mortgage interest rates were 12% guaranteed for five years assuming $50,000 dow
$ 241,500
Question 7
Assuming a $50,000 down payment and 4.5% interest rate in September 2019, what would your mortgage payments be in Se
rate for your mortgage was 14%?
$ 3,520.71
Question 8
What would be the total interest paid over the life of the mortgage assuming the original mortgage?
$ 217,938.38
Question 9
You plan on taking advatage of your right to make additional principal payments on your mortgage. Assuming you can afford
savings over the life of the mortgage?
$ 40,328.13
Question 10
Assuming the original mortgage parameters, what would your weekly mortgage payment be and how much interest would yo
Weekly Payment $ 420.89
Total Interest Savings $ 20,416.74
nd determine the maximum value of a house you can afford in September 2019
w much would you have saved as upon graduation June 01, 2017, assume your last payment is May 2017? 18 mos.
e 2017 to September 2019 to accumulate $25,000 assuming 5% growth rate.? 28 mos.
September 2019, assuming 5% growth rate 28 mos.
net take home earnings.
house you will be shopping for in September 2019
Includes Motgage P/I, Property taxes and Insurance
Includes Mortage P/I, Property taxes and Insurance
five years assuming $50,000 down payment.?
our mortgage payments be in September 2024 and the renewal
289728.1
tgage. Assuming you can afford an additional $200 per month, what will be the total interest
177610.2
and how much interest would you save over the life of the mortage assuming 4.5% interest for 25 years?
197521.6
