Bill and Tammy Jones are a 40 year old couple with two children ages 12 and 14.

• Their annual income is $350K (before tax)
• Annual expenses: Income taxes: $170K, Mortgage expense: $40K, Property taxes: $35K, car payments: $20K, 401K contributions: $17K, living expenses, food, etc: $38K
• They own a $900K home with a $500K mortgage.
• They want to find a bigger house in the $1.5M range.
• They have $20K in credit card debit @19%/year. They maintain 6 credit cards with a line of credit of $70K
• They have an unsecured personal loan of $10K @17%/year.
• They have a bank NOW account with $20K in deposits
• They have $50K in a 401K plan.
• They have saved $50K towards education.
• They have other savings of $200K invested in long term CDs
• They have $100K in term life insurance. They have a standard auto and HO1 homeowners insurance policy.
• They own an Audi A3 with a value of $45,000 and a car loan of $25,000 and a used car valued at $20K with no loan. They are considering leasing a BMW X5 at $700/month vs buying it.
• They also own an investment property valued at $800K with a $400K mortgage which produces rental income to offset all expenses and provide a $30K profit.
• Retirement dreams: They would like to retire by 60. They need help in planning their future and retirement options. They would like to travel extensively, spending $50K per year for the rest of their lives on travel. They envision a retirement where they can spend $100K per year on expenses other than travel for incidentals and live in a $4M home. They would like to fund their future grandchildrens education.
• Estate planning: They do not have a will nor have done any other estate planning.
• Now I need to finish the worksheet with the given information

• Amount of annual income

  Monthly income (Item 1 / 12)

  Lenders affordability ratio (in decimal form)

  Maximum monthly mortgage payment (PITI) (Item 2 X Item 3)

  Estimated monthly prop tax and homeowners insurance payment

  Maximum monthly loan payment (Item 4 - Item 5)

  Approximate average interest rate on loan

  Planned loan maturity (years)

  Monthly mortgage payment per $______ (using Item 7 and Item 8 and Table of Monthly Mortgage Payments in Exhibit 5.9)

  Maximum loan based on monthly income ($_______ X Item 6 / Item 9)

  Funds available for making a down payment and paying closing costs

  Funds available for making a down payment $ _______ (Item 11 X .___)

  Maximum purchase price based on available monthly income (Item 10 + Item 12)

  Minimum acceptable down payment (in decimal form)

  Maximum purchase price based on down payment (Item 12 / Item 14)

  Maximum home purchase price (lower of Item 13 and Item 15)