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John Berka

John Berka. John’s Life. John is a widower and single A school teacher with benefits. Has a 17-year-old son from a previous marriage. Has a car. Bad Credit. Getting ready to retire. Diminishing IRA. John’s Finances.

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John Berka

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  1. John Berka

  2. John’s Life • John is a widower and single • A school teacher with benefits. • Has a 17-year-old son from a previous marriage. • Has a car. • Bad Credit. • Getting ready to retire. • Diminishing IRA.

  3. John’s Finances • John make roughly $74,000 a year from teaching and a small business he owns. • He has around $350,000 in Assets from Land, a previous home, a car, and various savings accounts. • He makes $6,167 a month subtract $5,599 for living expenses. $420 of which goes to child support. Leaving $568 a month.

  4. Apartment Eaglewood Lofts: North Salt Lake Monthly: $800-1,000 • Pros: • Built in 2013 • Pool • Cons: • 1 Bed • 1Bath • Small Space

  5. Condo South Jordan $199,500 Monthly:$1,551 • Pros: • A Garage • 2 Beds • 3 Bath • Cons: • Small Area • Sharing property

  6. Cheap House Syracuse $85,500 Monthly:$667 for a 15year mortgage. • Pros: • Good Size • Cheap • Cons: • Built in 1910 • Detached garage • Run Down • Window AC

  7. Expensive House Herriman $400,000 Monthly: $1,527 for 30 year mortgage. • Pros: • 3 car Garage • 5 bed • Built in 2013 • Security System Cons:

  8. Picking the House • John will be able to buy the more expensive house. • He has enough space for his son to visit. • Great Neighborhood. • He needs $80,000 down payment, plus closing costs. • All Needs and Wants met!

  9. Closing Costs

  10. If John uses some of his savings he will be able to pay the down payment and closing costs as soon as possible. 350,000-87,516=262,484 in Savings. • We advise John to wait a year until his son turns 18 so he isn’t paying child support.

  11. Mortgage • 30 year mortgage. • 4% Fixed Interest Rate • $1,527 a month. • If John combines his monthly income for a house ($988) with $539 a month from his savings, he could pay off this house in 30 years.

  12. Principle/Interest on 4%, 30 Year Mortgage Total Monthly Payment Years

  13. Total • John Berka would end up paying a total of $549,720 at the end of the 30 Years. • The total interest paid will be $149,720.

  14. Choice • He should wait a year to sell his old house and wait for his son to come of age to be off child care. • He can live here for the rest of his life. • His next move should be to plan on moving in to this house in the next few years.

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