1. Houses vs Apartments

2. 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?

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

4. 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

5. 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

6. 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.

7. 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.

8. 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.

9. 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.

10. 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.

11. Refinancing
Obtaining a new mortgage to replace an existing one.

12. 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.

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

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