Question

You are purchasing a house 12 years from now. The estimated purchase price is $171,600.00. You want to make a 20% down payment. with a closing cost of 8.7%. How much do you need to save per month to reach your goal?

Answer 1

To calculate how much you need to save per month, we first need to find the total amount needed for the down payment and closing costs.

Down payment:
20% of $171,600.00 = 0.20 * $171,600.00 = $34,320.00

Closing costs:
8.7% of $171,600.00 = 0.087 * $171,600.00 = $14,951.20

Total amount needed:
$34,320.00 (down payment) + $14,951.20 (closing costs) = $49,271.20

Now, we need to calculate how much you need to save per month over the 12 years leading up to the purchase of the house.

Total savings needed:
$49,271.20

Total number of months:
12 years * 12 months/year = 144 months

Monthly savings needed:
$49,271.20 / 144 months ≈ $342.49

Therefore, you would need to save approximately $342.49 per month over the 12 years to reach your goal of purchasing a house for $171,600.00 with a 20% down payment and 8.7% closing costs.