Personal Financing Go buy a house (or, if you already own one, look at a new house to purchase). Based on your mini budget info from Week 1 and any savings/gifting, determine how much you can afford in monthly payments, then go buy a house in the location of your job. If your budget initially considered renting an apartment, use your gross income and the Affordable Mortgage calculation discussed in Chapter 9 of the text to determine an appropriate mortgage amount for you. Then, using one of the online service (Zillow, Trulia, etc.), provide a link to the specific house you have chosen

For this project, I expect you to use some of the time value of money skills I referenced in week one. Specifically, if you have a dollar amount from your budget that you can allocate to a new house, you should determine the size of the mortgage this monthly payment will support. Don't forget that your monthly payment includes PITI (principal, interest taxes and insurance). The latter 2 items must be subtracted from your available monthly amount to determine how much can be applied to the principal and interest of the mortgage.

I expect your response will describe any assumptions you have made (including, but not limited to, choice of urban/suburban/rural location, number of bedrooms, school district, etc), identify how you determined the property tax and mortgage interest rate, and factor in any downpayment you will make to purchase the house.

In sum, explain your process to me and show the math of how you determined how much house you could afford.

Use monthly gross income= $4,070