PowerPay Calculators & PowerPay Education Center

[Pages:11]PowerPay

Calculators & Education Center

PowerPay

Calculators

July 2009

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Marsha A. Goetting Ph.D., CFP?, CFCS

Professor & Extension Family Economics Specialist Department of Agricultural Economics & Economics

Keri D. Hayes

Publications Assistant Department of Agricultural Economics & Economics

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PowerPay Calculators Web site

(Utah State University-Extension)



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User Login

Enter New UScsreerenItnhfaot Armppaetairos n, Click Submit

? If new member, click [New? Sign

up now]

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Click Calculators Tab

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Calculator Options

1. Housing Expenses 2. Loan Qualifier 3. Mortgage Comparison 4. Transportation Expenses 5. Additional Payment 6. Emergency Savings

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Housing Expense Calculator

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Housing Expense Calculator

? Percentage of income going towards home costs per month

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Click on Housing Expenses Calculator

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Example 1: Housing Expenses Calculator

Monthly Take-Home Pay

5500

Monthly Mortgage (principal & interest) Payment/Rent

Monthly Property Taxes

1200 95

Monthly Home Owner's/Renter's Insurance

Monthly Maintenance

100 50

Monthly Utilities

300

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Calculate

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Results (Example 1): Housing Expenses Calculator

Total Housing Expenses

% of your total income:

Recommended % of income

$1745.00 31.727%

33-35%

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Example 2: Housing Expenses Calculator

Monthly Take-Home Pay

4000

Monthly Mortgage (principal & interest) Payment/Rent

Monthly Home/Property Taxes

1400 150

Monthly Home Owner's/ Renter's Insurance

Monthly Maintenance

100 50

Monthly Utilities

300

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Calculate

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Results (Example 2): Housing Expenses Calculator

Total Housing Expenses

% of your total income:

Recommended % of income

$2000.00 50%

33-35%

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Loan Qualifier Calculator

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Loan Qualifier Calculator

? How much to reduce monthly debt obligations to qualify for a loan

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Scroll to Top, Click Loan Qualifier

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Lender requirement

? Borrowers debt must be less than given percentage of income to qualify for loan

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Example

? 30% debt/income ratio

? No more than 30% of income is being used to pay creditors

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Example 1: Loan Qualifier Calculator

Debt to Income Ratio

Monthly Take-Home Pay

25 5500

Calculate

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Results (Example 1): Loan Qualifier Calculator

? Monthly Debt payment must be $1,375 or less

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Loan Qualifier Calculator Screen

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Example 2: Loan Qualifier Calculator

Debt to Income Ratio

Monthly Take-Home Pay

30 4000

Calculate

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Results (Example 2): Loan Qualifier Calculator

? Monthly Debt payment must be $1,200 or less

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Loan Qualifier Calculator Screen

Mortgage Comparison Calculator

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Mortgage Comparison Calculator

? Compares paying off a mortgage:

Biweekly Monthly

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Scroll to Top, Click Mortgage

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Example 1: Mortgage Comparison Calculator

Loan Amount Loan Term (years) Interest rate

155000 30

6.5

Calculate

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Results (Example 1): Mortgage Comparison Calculator

Monthly payment Total Interest paid Loan Term

$979.71 $197,693.96 29 years 11 months

Biweekly payment Total Interest paid Loan Term

$489.85 $152,164.37 24 years 2 months

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Results (Example 1): Mortgage Comparison Calculator

Savings from biweekly payments

Repayment time reduction from making biweekly payments

$45,529.59

5 years 9 months

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Results (Example 2): Mortgage Comparison Calculator

Loan Amount Loan Term (years) Interest rate

200000 30

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Calculate

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Results (Example 2): Mortgage Comparison Calculator

Monthly payment Total Interest paid Loan Term

$1,073.64 $186,511.57 29 years 11 months

Biweekly payment Total Interest paid Loan Term

$536.82 $152,183.63 25 years 3 months

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Results (Example 2): Mortgage Comparison Calculator

Savings from biweekly payments

Repayment time reduction from making biweekly payments

$34,327.94

4 years 8 months

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Transportation Expenses Calculator

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Transportation Expenses Calculator

? Percentage of income spent on overall transportation costs per month

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Scroll to Top, Click Transportation

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Example: Transportation Expenses Calculator

Monthly Take-Home Pay Monthly Vehicle Payment

Monthly Public Transportation/Taxies Average Monthly Gasoline Monthly State Vehicle Tax Monthly Automobile Insurance Monthly Maintenance

Calculate

5000 385 0

300 40

135 45

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Results: Transportation Expense Calculator

Total Transportation Expense

% of Total Income

Recommended % of Total Income

$905.00

18.1% 18-20%

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Additional Payment Calculator

Scroll to Top, Click Additional Payment

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