I need two post replys 150 words each with the following posts.
Jennifer Woodward
Post 1 – Mortgages
COLLAPSE
I help pay my mom’s mortgage so I know a few things about mortgages. The pros of having a mortgage are that you are investing in something that is yours as you make payments because you get equity. When you rent, you are paying to live in someone else’s home.
The cons are that if you are unable to make these payments, you can lose the house as it can be used as collateral. Right now, interest rates are high and everything is very expensive. Also, if you have a mortgage and you need some type of repairing or maintenance, you would have to fix it yourself or pay someone to do it for you.
Renting is different because when something goes wrong, the owner has to fix it but they are already making money off you either way but that’s beside the point. Some people don’t like having that commitment and might not have the income stability that others might have.
In my opinion, paying a mortgage is better than renting as long as you make sure you are not investing in something that you cannot afford to pay along with all other expenses that come with having a home.
W.C. 201
Kevin Lewis
Post 1 – To Rent or To Buy…
COLLAPSE
I learned that a mortgage is a loan from a financial institution that people use in order to purchase a house and that it is different from other loans since your house is used as collateral. There is no clear “better than” in buying or renting a home, that situation depends entirely on your lifestyle and financial means. (Wallstsurvivor, 2013). Renting property does not come with all the responsibilities affiliated with homeownership, such as taxes, services, and maintenance. The renter is not stuck with nor tied down to their property, meaning renters can move whenever their lease ends or terminate the terms and conditions of the rental agreement at any time. The costs may vary depending on where you live, certain parts of town may be more expensive than others. One could have to move suddenly if their landlord decides to sell the property or bump up the rent when their lease is up. Ultimately, as a renter, options are only limited to your budget but renting leaves little to no chance to truly make your home yours. In buying a home, one can make decisions about the look and design and get a sense of stability and pride of ownership. One doesn’t have to deal with a lot of neighbors and can modify the house and surrounding area to their liking. Some drawbacks may arise when trying to relocate and the homeowner may not be able to sell the house when they want or get the asking price posted. Owning your home comes at a big cost, both upfront and over the long run. One must deal with property taxes, homeowners’ insurance, trash, water, & sewer service, repairs and maintenance out of pocket; expenses not associated with renting property. Environmental concerns and economic issues, such as nearby sewer treatment/ hazardous waste sites or areas high in crime can affect the value of one’s home. Even other exterior conditions, such as the neighbor’s housing conditions can impact your home value. My biggest issue with home ownership is the APR and how earlier payment goes toward the principal balance before one actually begins to pay on the house; in addition to one spending more than the house is worth due to the accumulated interest. (Majaski, 2022).
Word Count 377
Majaski, C. (2022). Renting vs. buying a home: What’s the difference? Investopedia. Retrieved from https://www.investopedia.com/articles/personal-finance/083115/renting-vs-owning-home-pros-and-cons.asp
wallstsurvivor. (2013). What are mortgages? | by wall street survivor. YouTube. Retrieved from https://www.youtube.com/watch?v=CBIJwb37O_4
Please let me know if you have any questions.
