Bryce Has a high paying job and has determined he could afford up to $2700 per month

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• Wants a sweet home to reward all his hard work; his dream home costs $550,000
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• Has been sloppy in the past with his bill pay, leading to a credit score of 670, so the best rate he can get is 4.26% for 30 years fixed
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• Is willing to contribute $75,000 to his down payment
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1. How much, per month, is Bryce short on the mortgage payments for his dream home?

1. How much would Bryce's down payment need to be if he wanted to get his monthly payments down to $2,500 or slightly under?

1. Using this strategy, how much total interest would he pay over the course of the loan?

1. Unfortunately, Bryce doesn't have enough money to allocate towards such a huge down payment, so he decides to put in his original $75,000 down payment. Besides, Bryce is worried his credit score is a bigger problem, so he asks the bank how improving his score would impact his loan application. They provide this chart:

1. If Bryce could raise his credit score to 700 and keep the $75,000 down payment, could he afford his dream house?

1. Using this strategy, how much total interest would he pay over the course of the loan?

1. What do you think Bryce should do?

Answer rating: 100% (QA)

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