study guide for Buying vs. Renting

Name and describe the three types of locations in which people live.

1. urban-Close to work, shopping, cultural opportunities 2. royal -Less industry, fewer people, privacy 3. suburban-provides a little feeling of both - near work, entertainment

A standard down payment is

20% of the purchase price.

Describe the job of a Real Estate Agent.

A good real estate agent screens prospective buyers and shows the home only to people who are truly interested in buying a home and can afford a home of the price

. What do utilities and public services generally include?

Utilities- service such as electric power, gas water and telephone Public services-services such as fire department, hospital

what are needs?

Whenever possible people make choices that also fulfill their wants. Wanting something is not the same as needing something. You need shelter and water and food to live.

Conventional Mortgage Adjustable Rate Mortgage Graduated Payment Mortgage

a home loan in which the borrower pays a fixed interest rate for the life of the loan a home loan in which the interest rate changes depending on current rates in effect A home loan in which the payment starts out low and increase in the later years of the loan when the owner are likely to have more income

Gradual elimination of the principal is called

amortization .

The last step in buying a home is called

closing

The difference between the market value of a property and the principal owed on the mortgage is referred to as

equity .

What are the advantages and disadvantages of a new home?

They are clean and in good condition They have modern kitchens For some new homes the purchase price may include major appliances such as a dishwasher and a built in oven One disadvantage of buying a new home is that there are often unexpected cost In some new housing fixture such as towel racks, shower doors, and storm windows Other costs such as staining and varnishing woodwork may not be included in the price of the home.

What are 4 advantages of owning a home?

They are clean and in good condition. They have a modern kitchen and usually more than one bathroom. For some new homes, the purchase price may include major appliances, such as a dishwasher, and built-in oven.

What is a security deposit?

Before moving into a rental unit, a renter is usually required to pay a security deposit.

Define earnest money

Earnest money is a deposit that a potential buyers pays to show that he or she is serious about buying a home.

Define human and material resources.

Human resources are personal qualities that people posses including creativity, imagination, knowledge,skills,talent,time,energy,and experience. Material resources are tangible assets such as money, property supplies and tools assets that people may or may not possess themselves

What are closing costs?

In addition buyers are required to pay certain closing costs fees due at the time the purchase is finalized.

Development Homes Homes Built on Spec: Stock Home Plans Custom Built Homes

New homes are often part of a housing development, A housing development is created when a developer, builder or real estate company buys a large area of land and subdivides it into individual lots on which to build homes.some builders construct new homes on spec which is a short of speculation.many books magazines and websites offer stock home plans predesignated pre approved plans that are ready for a builder to use.people who desire a one of a kind home may choose to have one designed for them by an architect

What are 3 disadvantages of owning a home?

One disadvantage of buying a new home is that there are often unexpected cost. In some new housing futures such as towel rack,shower doors, and storm windows are not provided. other costs such as staining and varnishing woodwork may not be included in the price of the home.

What does renter's insurance cover?

Renters insurances cover their personal property against loss by theft, fire, or other hazards

What are the 3 disadvantages of renting

Subject to terms of a lease Rent may change with little notice Less privacy and transient neighbors.

What is a down payment?

The down payment may be from 5 to 25 percent or more of the purchase price.

What are 3 common housing trends?

The most common housing trends to be more expensive on the east and west coast than in the interior of the country. Housing within and near major cities tends to be more expensive than in smaller cities and towns. Within major cities housing costs are generally higher in downtown areas and sections under development.

What can a buyer expect to pay for at the time of the closing

Their down payment

A mortgage is.?

generally 15 to 30 years.

What should 3 things should you consider when trying to decide how much you can afford

incoming and saving is the things to consider when trying to decide how much can you afford.

What are the 3 advantages of renting?

low moving cost easy to move Less maintenance and repair work

What are the advantages and disadvantages of an older home?

many people prefer preowned homes, the age of these homes ranges from several years to a century or more. older homes often have greater individual characters than new ones older homes are usually in well established neighborhoods A major disadvantage of older homes is the possible cost of repairs Wiring, plumbing and interior and exterior surface all deteriorate with use of age repair and replacement can be expensive

Principal is the part of the payment that directly repays a portion of the original amount borrowed.

nothing is in the question

What are the 2 types of homeowner's insurances? What do they cover?

property insurances- this coverage protects the structure and its contents from damage or loss caused by a variety of hazards. person liability coverage: this type of coverage protects the home owner in case of an accident