Houses vs Apartments

On a sheet of paper answer these questions. Can a landlord restrict you from doing: Putting a child gate up on a stairwell. Prevent you from having pets Prevent you from putting a air conditioner in your apartment. Putting pictures up on the wall Painting your room a different color. What about cable or a satellite dish? If you do not pay your rent can the landlord take your stuff?

Restrictive Environment Cost of an Apartment Lease Cost of an Apartment Deposit Security Deposit First and Last months rent Location, Location, Location Renters Insurance

Buying or Selling a home 5 Steps Determine your home ownership needs Find and Evaluate a Property to Purchase Price the Property Obtain Financing Close the Transaction

Buying and Selling a Home Determine your home ownership needs When buying a home you: Increase equity The amount of money that you have invested into the home unlike an apartment Different types of homes Single family Multiple unit dwellings Condominiums Cooperative Housing Is another type of apartment Prefabricated Homes Pre manufactured homes that are assembled at the factory and put together on the site. Mobile Homes

Step 3 - Price the Property Escrow Accounts Is an account where money is held in trust until it can be delivered to a designated party. Earnest money Money that is set aside and paid to a person depending on the situation. P.M.I. Private Mortgage insurance Used when you do not put enough money down on a house (usually 20 or 22%) Used to make sure that you pay your mortgage, just in case you do not default on the loan.

Step #4 – Obtaining Financing What is a mortgage Is a long-term loan extended to someone who buys property Paying points Are a percentage decrease paid to the mortgage company if you would like a lower interest rate. Each point equals 1% of the loan amount. If a bank offers you $100,000 mortgage with 2 points. You would have to pay an extra $2000 to get the loan.

Mortgage Types The paying down of a loan over a period of time is called Amortization Paying $25 extra a month on a 30 year loan will save you $34,000 in interest charges over the 30 years. Fixed Mortgage – or conventional mortgage A mortgage where the interest will not change over the life of the loan.

Adjustable Rate Mortgage (ARM) Meaning the rate changes throughout the life of the loan. Rate Caps – the interest rate will only increase or decrease one or two percent. Convertible ARMS Permits a borrower to convert, or change, an ARM to a fixed-rate. Usually the interest rate is a little higher than in a regular loan.

Home Equity Loans Government Financing Programs FHA – Federal Housing Administration VA- Veterans Administration Help home buyers obtain low-interest, low-down-payment loans Home Equity Loans Is another loan based on the difference between the current market value of a home and the amount the borrower owes on the mortgage.

Refinancing Obtaining a new mortgage to replace an existing one.

Step #5 – Close the Deal Closing When a buyer, seller, and lender of money meet to close the deal. Many documents are signed, last-minute details are settled, and money is paid. The buyer and seller must also pay certain fees called “closing costs” Title insurance – a type of insurance that protects the buyer if problems with the title are found later Deed fee – which is the official document transferring ownership form seller to buyer.

Escrow account returned Homeowners must pay property taxes and homeowners insurance in addition to their mortgage payments

Selling a home Appraisal – an estimate of the current value of the property – and use that as a basis for a listing price.