AT THE BANK FOR A HOUSE MORTGAGE A: Hello Tim. Sit down.

So, youre thinking about buying a new house. B: Yeah, theres this fantastic house at !"# $% rd &orth A'enue that we'e (ust fallen in lo'e with, but we need to see if we can afford it. A: )et me get some information from you and well find out. *hats your account number+ B: ,!! $! "A: .s your /hone number still %,$0$$!"+ B: &o, its been changed to %1!0$$2!. 3ould you also /ut in my wifes cell+ The numbers area code $#%0%!$011 . A: 4reat. 5'erythings u/dated. 67, what was your income last year+ B: *ell, according to my T$, . made 82%, -#. 2. But since then, .'e gotten a $.,9 raise. &ow, my monthly before ta: /ay is around 8- hundred ;8- ##<, so yearly, that must be around 82,,1##. A: And your wife+ B: She makes the big bucks. Her income last year was 81 -," %. A: How about your debt+ B: )ets see. *e owe around 8 %,### on our )e:us, and, of course, we are still /aying on our house. A: =ight. . see here that you bought your house for 8"21,### in 1###, and you still owe 8 1#,##!.!$. Those e:tra /ayments you'e made o'er the years ha'e really added u/. Any idea what the current market 'alue is+ B: *e'e already acce/ted an offer of 82#-,###. A: So, then youll ha'e 8,-,,### after closing the deal. >lus, . see that you ha'e 8-#,1 , in sa'ings. Youre in really great sha/e financially. Tell me out this new house. B: *ell, it was built in %", it has $%!" s?uare feet on % le'els , with a fully de'elo/ed basement of around , hundred ; ,##< s?uare feet. The si@e of the lot is 1# ,### s?uare feet, a full ?uarter of the block. All of the a//liances stay including a sauna, hot tub, and e:ercise /ool, which the owner says are all 'alued at around 8$#,###. A: *owA That sounds like some house. How much are they asking+ B: 8 ,2 -,###, but our realtor thinks that we can /robably get it for 8 ,-2#,###. A: 67, let me crunch some numbers. =ight. According to your income and debt, you could actually afford 81,##",#1!, not that you should go that high. To a'oid e:tra fees, . suggest that you make at least a 1!9 down /ayment, which comes to 8$,1,!22. The best interest rate . can gi'e you is !.%9. At that rate, your monthly /ayments will be 82!$!.#,. Since you always make e:tra /ayments, . e:/ect you could ha'e it /aid off by 1#1!. Tim, 4i'en your financial situation, . dont see any reason why you shouldnt buy this house. B: 4reatA By wife will be thrilled. )ets start the /a/erwork.