FIN 2081 Chapter Notes - Chapter 7: Lenders Mortgage Insurance, Prepayment Of Loan, Negative Amortization
5/29/18, 9)42 AMChapter 7 - Selecting and Financing Housing - Taskade
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Chapter 7 - Selecting and Financing Housing
Your lifestyle and your choice of housing
Although the concept of lifestyle - how you spend your time and money - may seem intangible, it
materializes in consumer purchases.
Renting vs Buying Houses
Renting Advantages
Easy to move
Fewer responsibilities for maintenance
Minimal financial commitment
Renting Disadvantages
No tax benefits
Limitations regarding remodeling
Restrictions regarding pets, other activities
Buying Advantages
Pride of ownership
Financial benefits
Lifestyle Flexibility
Buying Disadvantages
Financial Commitment
Higher living expenses than renting
Limited mobility
Cost of Renting
A security deposit, frequently required when you sign a lease, us usually one month's rent.
This money is held by the landlord to cover the cost of any damages.
Evaluate home ownership
Stability of residence and a personalized living location are important motives of many home buyers.
One financial benefit is the deductibility of mortgage interest rate and real estate tax payments, reducing
federal income taxes.
A disadvantage of home ownership is financial uncertainty.
Types of Housing
Single-family dwellings
Multiunit dwellings
Condominiums are individually owned housing units in a building.
Cooperative housing
Manufactured homes are assembled in a factory and then moved to the living site.
Prefabricated homes have components built in a factory and then assembled at the housing site.
Document Summary
Although the concept of lifestyle - how you spend your time and money - may seem intangible, it materializes in consumer purchases. A security deposit, frequently required when you sign a lease, us usually one month"s rent. This money is held by the landlord to cover the cost of any damages. Stability of residence and a personalized living location are important motives of many home buyers. One nancial bene t is the deductibility of mortgage interest rate and real estate tax payments, reducing federal income taxes. A disadvantage of home ownership is nancial uncertainty. Condominiums are individually owned housing units in a building. Manufactured homes are assembled in a factory and then moved to the living site. Prefabricated homes have components built in a factory and then assembled at the housing site. https://www. taskade. com/v/h1mp45bpyq. The amount you spend on housing is a ected by funds available for a down payment, your income, and your current living expenses.
