you want to purchase a house in 10 years. You estimate the cost will be $184,500.00. you want to make a 20% downpayment and pay closing costs, which are 8.5%. how much are the downpayment and closing costs? how much do you need to save each month to reach your goal
The downpayment will be 20% of $184,500.00, which is:
0.20 x $184,500.00 = $36,900.00
The closing costs will be 8.5% of $184,500.00, which is:
0.085 x $184,500.00 = $15,706.25
Therefore, the total cost of the downpayment and closing costs will be:
$36,900.00 + $15,706.25 = $52,606.25
To reach this goal in 10 years, you will need to save:
$52,606.25 รท 120 months = $438.39 per month
Therefore, you will need to save $438.39 per month to reach your goal of purchasing a house in 10 years, while making a 20% downpayment and paying closing costs.
To calculate the downpayment and closing costs, we first need to determine the amounts separately.
1. Downpayment:
The downpayment is 20% of the estimated cost of the house.
Downpayment = 20% * $184,500.00
Downpayment = $36,900.00
2. Closing Costs:
Closing costs are 8.5% of the estimated cost of the house.
Closing Costs = 8.5% * $184,500.00
Closing Costs = $15,682.50
Now, to determine how much you need to save each month to reach your goal, we can divide the total amount by the number of months (10 years = 120 months).
Total amount to save (downpayment + closing costs) = $36,900.00 + $15,682.50 = $52,582.50
Monthly savings goal = Total amount to save / Number of months
Monthly savings goal = $52,582.50 / 120
Monthly savings goal = $438.19
Therefore, you need to save $438.19 each month to reach your goal of purchasing the house in 10 years, considering the downpayment and closing costs.