Home Ownership Blog
Standard: 6.2.12.D Predict
how changes in supply and demand affect equilibrium price and quantity sold.
EQ: What are key concepts of home ownership and what are risks and tradeoffs of owning property?
Grading:
10 points - paragraph answering essential question
5 points - listing a relevant website
15 points - reacting to two fellow students work
= 35 points
Due Date: Thursday, April 23rd at 11:59pm
Goal: Understand key concepts of home ownership as well as weighing the benefits and risks of owning property.
Task: After studying the website,
- write a paragraph or more answering the essential question of the lesson: YOU WILL POST BELOW IN THE COMMENTS SECTION. PLEASE REMEMBER TO POST YOUR NAME AND PERIOD. SELECT ANONYMOUS OR USE YOUR PRIVATE GOOGLE ACCOUNT TO POST. PUT YOUR NAME AND PERIOD IN THE POST IF YOU SELECT ANONYMOUS.
- Post an informative website about home ownership
- Comment thoughtfully on two other students' blog posts.
WRITE ABOUT THIS:
What are some key concepts of home ownership and what are some benefits and risks to home ownership?
Hey it's Mr Del!
ReplyDeleteJonathan R
ReplyDeleteHomeownership has consistently been a piece of the American Dream. Therefore, numerous individuals acknowledge claiming home as the right, even mandatory activity without thinking about the advantages and the dangers. On the off chance that you are thinking about purchasing a home, you should know and survey the advantages and disadvantages of the speculation you are going to settle on—as you would any venture choice—before leaving all necessary signatures.
You can live in your own home for whatever length of time that you need without stressing over rent reestablishment. In the event that you have a fixed-rate credit, your head and intrigue installments will never go up. Be that as it may, your installment for property expenses and mortgage holders' protection may build every year. You may pay a less personal assessment on the grounds that the home credit intrigue and property charges you pay every year are deductible from your assessable pay. After some time, you amass value, which speaks to your proprietorship enthusiasm for the property. You might have the option to get against or convert your value into money by selling your home. Besides picking up value as your home loan balance goes down, your home may increment in esteem, along these lines furnishing you with extra value. Having your own home gives you the opportunity to live as you wish. You can have pets and paint your dividers any shading you need. In the event that you make home enhancements admirably, they regularly add to the estimation of your home.
Frequently the month to month cost of a home loan, utilities, and support is higher than the lease. Nonetheless, now and again, claiming a home may really be less exorbitant than leasing. There are no ensures that your home will increment in esteem. Changes in economic situations, mileage on the property or different components can make the estimation of your home decay. At the point when you lease, fixes are the proprietor's obligation. At the point when you own a home, you need to make the fixes yourself or pay another person to do them. You should rapidly fix little issues, as free shingles and stopped up channel funnels, or they can, in the long run, cause greater costlier issues. At the point when you own a home, you frequently can't move until you sell it or lease it. Selling can take a while – or more. On the off chance that you quit making your home loan installments, the moneylender may abandon your home and power the offer of your property to reimburse the credit. In the event that that occurs, you could lose your whole upfront installment and any value you have earned throughout the years. Your FICO score will be influenced in any event seven years.
4th period,forgot to put that
DeleteThis is very thorough Jonathan! I think you said so much. I like what you said about all the variables that go into the value of a home.
DeleteYou gave a lot of detail.
DeleteJanye
Home ownership plays a vital role in helping to build strong, and stable communities. In addition to it bolstering your communities treasury through taxes, research shows the many social benefits it provides, including increased volunteerism, improved health, and less crime as well. Home ownership has consistently been a piece of American dream for a long time. numerous individuals acknowledge claiming home as the right, even mandatory activity without thinking about the advantages and the dangers.Buying a home is a really big decision and it can be life changing for many people. I feel like you have to make sure and decide if Home ownership is right for you. There are pros and cons to buying a home. some pros is less maintenance and you can repair the costs, Lower monthly upfront costs, and shorter term commitment. Some cons are Monthly payments may increase year after year, The risk your lease won't be renewed, and paying someone else's mortgage. I just think that you have to wait and see if you have enough money to buy a house. In my opinion buying a house can be really good because you can do whatever you want and nobody can tell you what to do.You can have pets and paint your dividers any shading you need. In the event that you make home enhancements admirably, they regularly add to the estimation of your home. As I said before if you have enough money to buy a house and your life is situated then I feel like you really should, because you would have a lot of freedom. Changes in economic situations, mileage on the property or different components can make the estimation of your home decay. At the point when you lease, fixes are the proprietor's obligation. At the point when you own a home, you need to make the fixes yourself or pay another person to do them. You should rapidly fix little issues, as free shingles and stopped up channel funnels, or they can, in the long run, cause greater costlier issues. Selling the house will take kind of a long time.On the off chance that you quit making your home loan installments, the moneylender may abandon your home and power the offer of your property to reimburse the credit. If this happens you could lose your upfront installment and any value that you have worked extremely hard for throughout the years. That's why you have to be safe as well. When buying a house the most important thing in my opinion is to make sure that you are financially stable. Home ownership can help build the economy.
ReplyDeletehttp://www.freddiemac.com/blog/homeownership/20180604_national_homeownership_month.page
https://www.cmhc-schl.gc.ca/en/buying/homebuying-in-canada-a-step-by-step-guide/decide-if-homeownership-is-right-for-you
This was by me -Janye Stanley 4th period
DeleteI like how you included your own ideas and advice when explaining the pros and cons of owning a house. Based on what you said and my own research, I think I would prefer to own a house since I'll have more freedom and hopefully a stable job.
DeleteCristina
Janye...can you plesae explain (in your own words) what you learned. Just explain as if you are talking...
DeleteSome key concepts of home ownership can be a rule of spending no more than 28% of your income, before taxes on housing cost like mortgage or rent. Buying a home within your comfort zone or even before you start looking at homes, take the time to put together a budget even if you've been prequalified for a mortgage payment will fir within your lifestyle without putting ant other financial plans on hold.Three little steps you can follow are, "Know your income and expenses" " Set your priorities" and " Track your spending". Mortgage payment ratio is not about maximum amount you can borrow based on your income but its based off what you can comfortably afford. For example, take whatever you make each month, before taxes and multiply that by 28% and that would be how much a manageable monthly payment might be for you which includes taxes and insurance and PMI. For better money habits when looking for a house, you should consider your goals, run the numbers and understand your mortgage options. If you have any questions about buying a house or even about your money, feel free to ask. One question may be is "How much money do i need to put down?". To answer your question, to get the best rate and terms for your loan, try to put down at least 20 percent of the purchase price, Although a lower down payment won't necessarily disqualify you. There may be a chance that a monthly private mortgage insurance (PMI) payment will be added if your down payment is less than 20 percent. Another question may be " When can I lock the interest rate?". The interest rates are always fluctuate, sometimes locking in a low rate can really pay off. Ask your lender when you can lock a particular rate and for how long, but always keep in mind that lenders will usually offer lower interest rates for shorter-term locks and higher interest rates for longer-term locks. What you need to know about home-buying and dept is your dept-to-income ratio (DTI) helps lenders decide whether to approve your mortgage application but what is that exactly? Simply put, it at the percentage of your monthly pre-tax income you must spend on your monthly dept payments plus the projected payment on the new home loan. Generally lower you dept-to-income ratio is the more likely you are to qualify for a mortgage. Renting and Owning each have their advantages, but what's best for you depends on your circumstances. Owning a home is a financial commitment that requires you to plane ahead and reflect on where your life is headed. While renting a home you pay less up front while many landlords ask for the first and last months rent as well as a security deposit, but you may not be able to update or personalize your living space. While owning a house most mortgages require a down payment, and you generally get better terms with more money down and you may also need to pay closing cost. You can usually customize or update your home with renovations that may boost your home's value. For a home benefit, you may be able to get one if your on a low income or you claim benefits. Housing benefits is paid by your local council. A risk for a home may be just buying the house straight out. Another risk can be, your house becoming obsolete in the market today and the estate market is always charging.
ReplyDeleteKhanyae Emerson PD4
I like how you focused on the amount of planning that goes into home ownership. It was something that my summary lacked, so I was definitely able to learn more from your summary. I will consider the 28% rule, and maybe even underestimate how much I can afford, when buying a house.
DeleteCristina
Angellise, pd 4
DeleteI like how you covered more than one topic on home ownership.
Jessica Ledesma: I really like your way of describing the subtopics. With home value I was wondering about home value since the area you lice in determines a lot regarding your houses price. I had heard in lower income areas it can be harder to this because of areas. I think you can still go high but had heard it is harder from a speaker. What are you thoughts
DeleteKhanyae. This is very in depth. Do you understand what you mean when you discuss terms like PMI? If so, great job because there's a lot of good info here!
DeleteJanye- I like how you covered more than 1 topic
DeleteCristina Ledesma, 4th period
ReplyDeleteThere are some concepts about homeownership that not everyone knows about if they are not familiar with it. One is home equity, which is your mortgage balance subtracted from the appraisal value of your home. This is important because having good home equity will allow you to have better options, like not needing private mortgage insurance. Another concept is mortgage points, which are fees that you pay directly to your lender so that you can have lower monthly mortgage payments. Additionally, not all mortgages are the same, more specifically there are two types, fixed mortgage rates and adjustable mortgage rates. Fixed mortgage rates do not change for the entire life of the loan, while adjustable mortgage rates change with the market condition. Sometimes, it is difficult to decide whether you should rent or buy a home. You may want to buy a home if you want the freedom to style it the way you want and it is a good investment for you. You can also save money on your taxes by deducting mortgage interest. However, if the home needs repairs, then you will be the one responsible for paying them. The down payment may also be something you need to save for and consider. Renting may be a better option if you plan on moving or do not have job security.
https://www.bankrate.com/real-estate/renting-vs-buying-a-home/
Comment from Jessica- Cristina you made some really interesting points I really find the decision interesting as we go to college. Personally I struggle with the decision as things are changing more and more people are staying with parents during college because of the ever rising cost of college, students have to decide between paying for college or not. I read about it in some articles or not owning their homes "https://www.cnbc.com/2018/05/31/young-people-choosing-between-paying-for-college-and-buying-homes.html" personally I struggle knowing exactly where I will be I would love to have an apartment but will I be making enough investing everything I have into college. I would love to buy a house but wonder where I will be.
DeleteChristina...you are right. Home equity is one of the best ways to grow wealth.
DeleteJessica Ledesma (Principles of Economics 4th period)
ReplyDeleteWhere we live is a big indicator of our daily life and wherever we live can have big impacts on someone down the line depending on their situation. What makes your house a home has to do with your environment including good job opportunities available, cost of living, culture (entertainment, school), and working for your family situation whatever that may be (single, couple children). You’re options for housing can include rental and home. The process of owning a house can be one that will take up a large portion of your life as typically houses are long term living arrangements. This has to do with the fact that housing prices are typically too high for people to pay down right away. Because of this factor people typically take out loans through mortgages. How specifically can be determined by your situation. Many factors can be included to factor into how much you can spend per the moment to budget for everything with typically 20% being put down in the downpayment which will in the long rung help you pay less interest since a greater portion of the house is paid for with no interest accumulating for longer for that cost and help lower risk of paying an additional private mortgage insurance (there are options open to help people in different situations depending on their circumstance and not require a 20% deposit including lender specific loans federal housing administration affordable loan situation and for people who are disabled who typically struggle with income such as the HUDS section 8 Homeownership Voucher Program and housing that is specific for helping those in need by making down payments or subsidizing mortgage payments according to realtor.com “4 tips for buying a home if disabled” Fortunately, HUD's Section 8 Homeownership Voucher Program was established specifically to assist low-income individuals and families in renting or buying a house by subsidizing their monthly mortgage payments. . You can have adjustable-rate mortgage with which has a set interest rate for a certain time and adjusts according to the rates or fixed which involves a set and stone interest rate (typically higher.) There are many other possible cost in buying a home – owning including loan-origination fee, appraisal and survey fees, title insurance, homeowners insurance, whether you buy mortgage points in exchange for lower interest rates, property tax, closing or escrow fee, attorney fees, miscellaneous fees. With equity you can looks towards building credit with HELOC with a limit for big purchases based on your circumstance (if not careful can have drastic impacts). Home owning allows you investing oppurtunities. Depending on where you live home owning might be better than renting (many factors length, rent cost, job position.)
Jessica- meant to add but it got off for some reason that hosing has a lot to do with personal situation. The process is so long that you want to ensure that you are determined on your status. If you all around or not sure what will happen and dont have a stable image a home can be difficult.
DeleteJessica..very good overview of the topic. And you are right..mortgages are a very necessary part of owning a home.
DeleteAngellise Pd 4
ReplyDeleteBefore buying a home, there are a few things one should consider beforehand like...
- Knowing our goals and what we want to do in the future.
- Checking if we are financially stable.
-Looking at the pros and the cons.
What I mean by this is that before a person considers buying a home they must be sure of what their goals are and what they plan to do in the future. If one's goals don't line up with the requirements of buying a house, perhaps renting is a better choice for them at the moment. A few benefits of owning a house is that you are allowed to do what you want with the space that you have. When renting a house, you must ask the landlord for permission to personalize the space you live in. Another benefit of owning a house is that you can save money on taxes and build equity if the value of your home increases. A few disadvantages of owning a home is that you are at risk of foreclosure/Bankruptcy. You are also responsible of and repair costs you may need to attend to. Lastly, before being able to relocate your self, you must rent or sell the house.
https://www.incharge.org/housing/homebuyer-education/homeownership-guide/advantages-and-disadvantages-of-owning-a-home/
Angellise thank you for sharing what you learned. This is my favorite post! :-)
DeleteThe way you formatted this makes me feel as if you fully grasp all the information.
DeleteI do understand what you learned and how its beneficial!
Jaivis
Chantea Parker/ pd 3
ReplyDeleteWhen it comes to owning a house can be tricky if you do not know anything about what you are doing. Some key concepts are that you will build equity.And by that i mean more of what you pay each month goes to the loan instead of interest. Greater and better privacy for yourself and/or if you have a family, owning a home will open up so much more privacy and since it is your property you can renovate it and give it whatever makeover you want. You will also have stable monthly payments. You will have a fixed rate mortgage, which means that you will pay the same monthly amount. Most people that buy a house are more likely to stay in it longer so you are guaranteed great stability. Now, with all those wonderful benefits to home ownership it also comes with a lot of risks. Maintenance costs, when something is wrong or needs fixed in your house you will have to pay for that out of your own pocket. Property values can fall meaning over time your house will look and get older especially if you are not keeping up with it.
https://www.investopedia.com/articles/mortgages-real-estate/08/home-ownership.asp
Sara Dansby period 4
ReplyDeleteWhen it comes to owning a house can be tricky if you do not know anything about what you are doing. Some key concepts are that you will build equity.And by that i mean more of what you pay each month goes to the loan instead of interest. Buying a home within your comfort zone or even before you start looking at homes, take the time to put together a budget even if you've been prequalified for a mortgage payment will fir within your lifestyle without putting ant other financial plans on hold.Three little steps you can follow are, "Know your income and expenses" " Set your priorities" and " Track your spending". Mortgage payment ratio is not about maximum amount you can borrow based on your income but its based off what you can comfortably afford. For example, take whatever you make each month, before taxes and multiply that by 28% and that would be how much a manageable monthly payment might be for you which includes taxes and insurance and PMI.
Yes home ownership is really hard and tricky but it will become easy by using the sources given to us.
DeleteJaivis
Homeownership assumes a fundamental job in assisting with building a solid, and stable society and communities. Notwithstanding it reinforcing your networks treasury through expenses, look into shows the numerous social advantages it gives, including expanded volunteerism, improved wellbeing, and less wrongdoing also. Homeownership has reliably been a bit of an American dream for quite a while.With regards to possessing a house can be precarious on the off chance that you know nothing about what you are doing. Some key ideas are that you will construct equity. And I mean a greater amount of what you pay every month goes to the credit rather than intrigue. Purchasing a home inside your customary range of familiarity or even before you begin seeing homes, set aside the effort to assemble a spending plan regardless of whether you've been prequalified for a home loan installment will fir inside your way of life without requiring subterranean insect other money-related designs to be postponed.
ReplyDeleteJaivis
I will consider the 28% rule, and maybe even underestimate how much I can afford, when buying a house. Also being able to get my dream home.
DeleteSara
Yes. I agree...equity is key to growing wealth!
DeleteHomeownership expects a crucial activity in helping with building a strong, and stable society and networks. Despite it fortifying your systems treasury through costs, investigate shows the various social focal points it gives, including extended volunteerism, improved prosperity, and less bad behavior too. Homeownership has dependably been a touch of an American dream for very much a while. With respect to having a house can be shaky in case you know nothing about what you are doing. Some key thoughts are that you will build value. What's more, I mean a more prominent measure of what you pay each month goes to the credit as opposed to interest. Buying a home inside your standard scope of recognition or even before you start seeing homes, put aside the push to collect a spending plan whether or not you've been prequalified for a home advance portion will fir inside your lifestyle without requiring underground creepy crawly other cash related structures to be delayed
ReplyDelete-Elijah