Quantitative Reasoning
Quantitative Reasoning Math 1030-008
This Paper is a Research Project that looks at home buying, mortgages and buying versus renting. It outlines a 15-year and
30-year mortgage at current rates and the advantage of paying off the 30-year mortgage early by adding to the montly required
mortgage payment. It also looks at buying vs renting.
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wcfmurfinfl5ls5@wcfgroup.com_20101126_113402.pdf Size : 728.138 Kb Type : pdf |
House Project Reflection
The house project shows the different between a 15-year and 30-year mortgage. With a 15-year mortgage at 3.50% you will pay $47,700 more for the house than the asking price. That is 27% more than the house is worth. With the 30-year mortgage it is an advantage to pay $50 more per month and paying off the loan three years earlier. Researching is the best way to find a good rate and what is best for your pocketbook.
The tax benefit of buying a home is you can itemize your tax return and have property taxes as a deduction. The current amount of real estate foreclosures shows that taking a big risk can result in losing your home. I am not able to take a risk of buying a house at this point in my life.
I am not in a position where buying a house is affordable to me. Renting an apartment allows me to be free of home repairs and the responsibility of owning a house. On the other hand, having my own house would give me some freedom that you cannot get from an apartment.
The project gave me great insight into the world of renting and buying. What the advantages and disadvantages to look for when buying a house are really important. There is a big risk and responsibility when buying a house; however, there is no place like your own home!
