Overview

For this assignment, you will continue working on your Life Costs and Goals Worksheet which will be submitted later.

Read

Click on Chapter 9.1 to open the reading passage from the book, Individual Finance (the book is no longer available). This reading discusses the advantages and disadvantages of renting versus owning a home. You will also read about important points to consider when choosing a home to purchase. Pay special attention to the following points:

What are the main advantages of home ownership? What are the primary drawbacks?
Is there one type of home listed that sounds more appropriate for your needs than another?
Why is it important to understand the factors that go into your mortgage affordability calculation?
Why are inspections important before buying a home?
How does the neighborhood influence home prices?

Do

Once you have completed the reading, complete the activities below

Determine whether it would be better for you and your family in the long run to own or rent a home. If you already own the home that you want to stay in for the next ten years, you may skip this part and simply fill in your monthly mortgage payment in Part 2 of your Life Costs and Goals Worksheet, which you began filling out in the Part 1 of this activity. Otherwise, continue on to the next step.
Go to zillow.com and locate a home in your desired location that meets your needs.
If you have chosen to buy, select the home, and scroll down to the Mortgages section of the page. Open this section, and set your down payment amount to determine your approximate monthly mortgage for this home.
If you have chosen to rent, select the home to find out how much the monthly rent will be.
Complete Part 2: Owning or Renting on your Life Costs and Goals Worksheet.