You need to prepare a home purchase spreadsheet similar to the below illustration:
Table: Calculating Down Payment
Purchase Price | $532,410 |
Down Payment to Builder | ($19,370) |
Credits and Incentives | ($12,943) |
Outstanding Balance | $500,097 |
Down Payment Rate (% of Purchase Price) | 20% |
Loan Amount | $425,928 |
Closing Costs | $15,434 |
Total Down Payment at Closing | $89,603 |
Table: Source of Funds
Source of Funds | |
Sale of Shares | 48,570 |
Mutual Fund Liquidation | 28,498 |
Bank Balances | 12,535 |
Total | 89,603 |
Table: Monthly EMI Outgo
Interest Rate | 2.75% |
EMI (without Escrow) | 1,739 |
Monthly Escrow Amount (Insurance + Property Tax) | 544 |
EMI (including Escrow) | 2,283 |
Table: Changes to Expenses and Investments after EMI
Prior to EMI | After EMI | |
Income | 10,598 | 10,598 |
Expenses | (7,248) | (7,000) |
EMI | – | (2,283) |
Monthly Outgo towards Investments | (2,500) | (1,000) |
Monthly Savings | 850 | 315 |