1. Let’s Buy a House

2. THE BIG QUESTION ? Can We Afford It?

3. 1st List Monthly ExpensesBefore House Payment

4. Utilities Expenses $500 (Electric, Phone, TV, Water & Sewer, Trash) Auto Payment $800 Grocery Expense $500 Home Insurance $200 Auto Insurance $300 Total Monthly Expenses $2300 prior to House Payment

5. 2nd CalculateIncome Left AfterMonthly Expenses

6. Gross Monthly Income Husband Net Monthly Take Home Pay After Taxes $2200 Wife Net Monthly Take Home Pay After Taxes $2200

7. Total monthly income HUSBAND $2200 WIFE $2200 TOTAL INCOME $4400

8. INCOME LEFT FOR NEW HOUSE MONTHLY INCOME $4400 MONTHLY EXPENSES $2300 INCOME LEFT FOR NEW HOUSE $2100

9. 3RD Calculate VariousHouse Payments

10. House Payments All payments are calculated based on 6% fixed interest over 30 years. House #1 $150,000 $ 900 House #2 $200,000 $1200 House #3 $250,000 $1500

11. 4thSee Which Payment Fits Into the Monthly Budget Best

12. Which house payment fits best ?? Income Left For House Payment $2100 Income After Payment House #1 $900 $1200 House #2 $1200 $ 900 House #3 $1500 $ 600

13. ConclusionBased on Monthly Income this Couple Could Afford a New House.