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Buy vs Rent decision making
Importance of homeownership
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For Christmas, I received a card from the real estate agent my husband and I dealt with when we moved into our rental apartment. She had written on the card: “If you don’t renew your lease – are you ready to purchase a home?” While I commend President Obama for taking a step against the banks and powerhouse CEO’s of the financial world, it’s not just the big guns we have to go against if we want to avoid another financial crisis. Everyone around us – from real estate agents to loan officers to banks, family and even internet news articles – the human being is constantly being told that buying a home is the American dream. While we may find a real estate agent that can find some amazing homes for us, in reality, my husband and I know we can’t afford it. Between property taxes, PMI insurance, earthquake and property insurance, HOA fees, property upgrades and the mortgage payment itself – we would be in debt before we even signed on the dotted line. The current mortgage crisis could have been averted if the buyer was well informed and if the banks and real estate agents weren’t worried about making numbers and commissions. It could have been averted if knowledge was placed in the hands of the people instead of in the people at the real estate offices, the banks and the construction companies. I have outlined three things that the common borrower, investor and bank should do.
In order to take steps to avert any additional foreclosure crises, there needs to be knowledge placed in the hands of the borrower. Approximately a month ago, my husband and I found a loft online that we have been eyeing here and there for about six months. We calculated that we would need down payment assistance if we were to buy this loft. That is ...
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...le about different loan programs out there and to learn what ones work best for their lifestyle before talking to a bank. Additionally, banks and real estate agents have to learn it’s not just about the bottom line or about placing a borrower into a loan program that they are not qualified for or barely qualify to begin with. Bonuses based on how long the loan stays out of default could be a new incentive for banks instead of worrying how long it took for a property to move from the auction date all the way to close of escrow. Many future foreclosures can be avoided if certain precautions are taken. However, the foreclosures of 2008 and 2009 were also a causality of businesses failing and many people losing their jobs. Unfortunately, if that trend continues, there will be nothing to do to stop the foreclosure crisis from deepening and continuing for years to come.
If you are looking for a new house, you have probably heard the terms PMI mortgage insurance and homeowner tax deductions, among a plethora of other terminology you don 't normally come across unless you are ready to buy a home. So what exactly does it all mean and why should you care? Well, the more educated you are when it comes to the home buying process the more likely you are to make better financial decisions based on your particular situation and the less likely you are to make any devastating mistakes. Real estate is extremely complex and not having at least the basic knowledge of the process could ultimately cost you dearly. Therefore, we are going to explain to you what the term PMI means and why you should care. Then we are going
In the essay “The Mansion: A Subprime Parable,” Michael Lewis unfolds the real face of the American dream. He talks about his own personal experience in his look out for a house and his struggle with the house he rented. Most Americans have bought houses they cannot afford. Banks offered loans, they have lent mortgages that many don't have enough financial resources to pay them back. Agents have falsely guaranteed that real estate prices will be in constant rise, they promised them that there will be no declination in prices.
Another reason why we saw the price of houses rise was due to the low
The House on Mango street is a novel written by Sandra Cisneros who wrote this in a really creative and unique style; She did not write it all altogether but in small chapters. Cisneros was really successful in reflecting her Latino society by developing a character who is a young Latina girl called Esperanza showing how are the injustice, mistreatment and abuse from the males in the society. When Esperanza sees that other women who live in the same neighborhood are being abused by their husbands or fathers, her dream of leaving the house becomes stronger. Consequently she decides to leave her family house on Mango Street. In a particular chapter, ‘The Three Sisters’, the writer tells the reader about the story of Esperanza’s meeting with the three sisters who play a future teller role. She described their appearance in a beautiful way which makes the reader feel the same way Esperanza feels when she sees them. Additionally, she sat up the atmosphere of the scene before getting into details which also helps the reader feeling the moment. In ‘The Three Sister’ Chapter from ‘The House on Mango Street’, Esperanza by coincidence meets the three magical sisters who would tell her about her future and what to do with it which really comes to be the theme of identity and future.
From the beginning of our existence, we as people are taught that life is about the pursuit of
Distributive bargaining is a very important negotiation skill. Used as the core of the core of an negotiation, distributive bargaining is defined as, “a negotiation method in which two parties strive to divide a fixed pool of resources, often money, each party trying to maximize its share of the distribution” (Michael R. Carrell, 2008). Within the distributive bargaining process, the two parties involved have to negotiate over a set of assets in which one person looses and the other gains. This is why Distributive bargaining is also called Zero-sum. Carroll explains that distributive bargaining is called a zero-sum process because one party looses whatever amount is gained by the other” (Michael R. Carrell, 2008).
The frequency of foreclosure in our nation today is dangerously high. The strain from the recent economic downturn has put many families and individuals in a financial chokehold preventing them from being able to make their monthly mortgage payments. Consequently, many of these people feel they’ve punched a one-way ticket to foreclosure. With all these homes being foreclosed on, we face a very real crisis.
There are many people who are unable to decide whether they should buy or rent a home. Both renting and buying a home have their benefits, therefore it is important that you compare the benefits and drawback of buying and renting a home.
The real costs of home ownership Because of the high prices of homes in the United States, people often focus on only the buying price when considering the costs of owning a house, and neglect many other aspects of home ownership. A house is not your regular item that you buy, store or use for a limited amount of time. Houses come in a package with upkeep costs and taxes, and it’s wise to take these into account when analyzing your finances. The average cost of a house is estimated to be around $200,000 in 2013. As such, it’s no wonder people are distracted by such a significant amount and overlook other aspects.
Buying a home can be an exciting experience for anyone. However, in some cases you just might be better off continuing to rent your home. There are many advantages to buying a home. However, it is not for everyone and buying varies from individual to individual. Currently more people are leaning towards renting but this could change in the near future.
America is seen as the land of opportunity in that there are endless possibilities for an individual. In this land of opportunity, Americans strive to obtain the ideal known as the American dream. The American Dream is seen as the accomplishment of an ambition achieved while challenged by adversity.1 Americans often associate this success with the ownership of a home. The home is not simply a place of basic protection; there is a much deeper connection to the individual. Ownership of a home grants freedom and security that establishes a sense permanency for the individual. In contrast, renting a living space possesses a semblance of instability and dependence.2 The desire to improve ones’ position in life inspires one to obtain the American dream.
Foreclosure in America has been a rising and prominent problem recently, and has destroyed many Americans hopes and dreams. Over 2.3 million homes were foreclosed in 2008, and an estimated four million homes will be foreclosed by the end of this year. Despite the efforts of many banks and lending companies, over half of homes will foreclose that have received their help. I believe that we have only started in the right direction in solving the foreclosure crisis. Giving money and lowering mortgage rates will help, but I believe we should find out why Americans are in this situation in the first place. We are being too stereotypical when we think the only reason someone is foreclosing is because of irresponsible payments or buying a home out of a person’s capabilities to pay for it. If we understand their situation, we will be better enabled to help and solve their crisis.
Buying and owning your home is part of the American dream. Although the dream itself has since changed, the home still remains the main focal point. Today owning a home doesn’t necessarily mean a house. People now buy duplexes, cooperative apartments, and condominiums. For some families it could take up to a couple of generations before it’s able to have the capabilities of buying a home. To many people it means a certain achievement that only comes after years of hard work. It is a life altering decision and one of the most important someone can make in their lifetime. The reasons behind the actual purchase could vary. Before anything is done, people must understand that it’s an extraneous process and it is a long term project.
Most people, today, are looking forward to buying their first property. When individuals decide to buy a house those individuals would have to look at all their options and all the advantages and disadvantages that come from purchasing a house. The economy plays a huge role in the decision whether people will purchase a house, purchase a condominiums, or rent property.
Buying a home is something most people do at least once in their lifetime. Many people dream of buying their own home. The amount of new homes has grown tremendously and many people are buying houses. The median price of homes in California is approximately $500,000. The conventional way of buying a home is a procedure that takes a lot of time and patience. There are a few steps and procedures that are included in buying home. It includes getting pre-qualified by a loan agent to determine the maximum dollar amount of mortgage you can truly afford (real important step in the process), seeking a realtor, searching for homes, making offers, hiring a title company, an appraiser, home inspector, termite company and opening and closing escrow and other various services that benefit both buyer and seller. Buying a home is a complex process and most consumers do not know where to start and lack the education in regards to it.