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-

1. Purchasing a Home Neema Y. Smith

4. and I chose…

5. The Home 4620 Piedmont Row Drive #706D, Charlotte - South, NC 28210 Property Type: CONDO/TH List Price: $250,000

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

8. $246,504.47 $1,439.85 $327.10 $1,766.95 11 $246,175.47 $1,437.94 $329.01 $1,766.95 12 $246,831.57 $1,441.75 $325.20 $1,766.95 10 $247,156.77 $1,443.63 $323.31 $1,766.95 9 $247,480.08 $1,445.51 $321.44 $1,766.95 8 $247,801.52 $1,447.37 $319.57 $1,766.95 7 $248,121.10 $1,449.23 $317.72 $1,766.95 6 $248,438.82 $1,451.07 $315.88 $1,766.95 5 $248,754.70 $1452.90 $314.05 $1,766.95 4 $249,068.74 $1,454.72 $312.23 $1,766.95 3 $249,380.97 $1,456.53 $310.41 $1,766.95 2 $249,691.39 $1,458.33 $308.61 $1,766.95 1 Balance Interest Principal Amount Payment

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.

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.