Buying a House Pros and Cons

Investing And Building Equity

Many people see a home as an investment. That’s because you can build up ____ ____, which is the amount that’s left after you subtract your mortgage balance from the current market value of your home. For example, if your home is worth $100,000 and you owe $50,000 on your mortgage, you have $50,000 in equity.

The price for houses tend to ______ as time goes on, giving home owners a good chance to ____ profit when selling their house.

• Increase

  Gain

• Decrease

  Gain

• Increase

  Lose

• Decrease

  Lose

Credit

As you continually make your monthly ______ payments on time, your positive payment history can help raise your credit score. Another way a mortgage can help increase your score is by adding more diversity to your credit. A good credit mix shows lenders that you’re able to handle different kinds of ____.

Control Over Your Space

When you have control of your space as a homeowner, you won't have to worry about:

• Pet Policies

• Limits on Renovations

• Limits on Decorations

• Annoying Neighbors

• Paying Taxes

Stable Payments

Rent is likely to fluctuate with landlords as the ___ __ ____ rises. But homeowners with a fixed-rate mortgage can expect the same payment on their principal balance each month.

Stable Payments

True or False:

You could own your home free and clear, meaning you’ll no longer have to make mortgage payments to anyone.

AND

If you choose to rent for the rest of your life, you’ll always have a monthly payment.

• True

• False

Intangible Benefits

The "American Dream" of owning a house includes being able to:

• Build a family

• Host parties/holiday celebrations

• Live comfortably/safe

• Appear on an episode of "Cribs"

• Have shelter for the Zombie Apoclypse

Upfront Costs

There are several costs associated with buying a home. One of the most popular – and costly – is the ___ ____. While you’re not required to make a __% down payment, even the required 3% – 3.5% minimum is typically in the thousands.

You buy a house for $300,000:

How much do you pay for a down payment at:

3%:

AND

20%:

• 3% down payment of $9,000

• 20% down payment of $60,000

• 3% down payment of $12,000

• 20% down payment of $40,000

Market Fluctuations

If you are buyer in a seller's market, that means:

• Homes are expensive becuase there are less houses avaliable for sale

• Homes are cheap

• You are at a disadvantage in getting the home you want for an affordable price

• You are in an advantage of getting the home you want