Worksheet To Ms. Pescitelli's Case

Our loving family of five is looking for a house that we can afford, and with Ms. Pescitelli’s lovely worksheet, we can figure out what we can afford and when we can afford it.

1) First, we found out what our family’s gross annual income was. Presuming the working members of our family are young and inexperienced, we assume that our income would be about 80% of the Median Family Income (MFI) of all families in the Denver county. The 2016 MFI of Denver is estimated to be $80,100, 80% of which is 64,080%. 80,100 * 0.8 = 64,080

2) However, gross income is only the total money that we earn before taxes. To find out how much money is actually ours to spend, we must find our net annual income. Assuming that taxes would cost 25% of our gross income, our net annual income would be $48,060.

64,080 * 0.75 = 48,060 …show more content…
14) The homeowner’s insurance would be $1,400 annually, and $117. Monthly

350,000 / 1000 = 350 | 350 * 4 = 1400 | 1400 / 12 = 116

15) The monthly payment for the 30 year loan is $1,803
1482+205+117=1803
16) Our family set our budget for our house at $2000 a month, which is half of our net monthly income. The 30 year loan’s monthly payment is a little below our budget ceiling

17) The monthly payment for the 15 year loan is $2,535

2213+205+117=