1. Buying A House

2. Advantages of Home Ownership Feelings of Permanence and Security Incentive to Save Tax Advantages/Improved Credit Rating Investment Potential

3. What Are my options? Consider these: How many people living in house Lifestyle Budget Neighborhood

4. Single Family Homes STAND ALONE!!! Older Homes Ready-built New Housing Custom-built New Housing

5. Condominiums Apartment style but owned Same tax advantages Own individual unit/ less insurance Maintenance fee paid for common areas

6. Town homes & Duplexes Cross between Condo & Single Family Home Row Houses Private Entrances Shared walls Maintenance Fee for grounds upkeep & shared amenities

7. The Big Search… 1. Choose a Neighborhood 2. Contact a Real Estate Agent 3. Inspect Homes (you/ expert) 4. Make an offer (earnest money= contract pending)

8. Closing Costs Terms to know: Appraisal (opinion of an expert as to the fair market value) Title – Legal papers show who owns it Down Payment- Money you place toward the amount you pay for the house- this makes your payments less each month Realtor Fees

9. What is a Mortgage? A large loan used to buy real estate (a home or land) 2 Parts to a mortgage: Principle- The amount you borrow from the lender Interest- You get charged interest on your loan based on how much you still owe.

10. About that Principle… It is common to make a down payment of 20% on the purchase of a home. Sooo….. If you bought a $300,000 house, and put 20% down on it, your down payment would be $60,000! Your principle would then be: $300,000- $60,000 (down payment)= $240,000- that is your principle!

11. Fixed Rate Mortgages (FRM) The amount of the monthly payment is set for the full mortgage term – often 20 or 30 years. Thus, if the monthly payment is $800.00, the buyer knows this amount will remain the same. Even if the cost of living should double before the loan is repaid – the monthly payment remains $800.00 Be sure to compare APRs offered by different institutions, in order to find the best FRM.

12. Variable Rate Mortgages (VRM) When credit is hard to obtain – many find they cannot get a FRM. Lenders guarantee profits by offering only VRM. Variable rate mortgage is one in which the interest rate can change periodically. There are several different kinds of VRMs.

13. Adjustable Rate Mortgages (ARM) These types of loans start at one APR, but then the rate can change. Why do you think someone might want to have this type of mortgage? What do you think this might be dangerous?

14. How are renting and buying different and the same???