Advantages: You don’t have to be locked into a 30 year loan
and someone else fixes everything for you.
Disadvantages: You don’t own your home and you have to
share walls with strange people you don’t know. You also
have to pay a deposit on your first month in the apartment.
Most people that live in apartments also pay renters
insurance that covers your personal belongings and will give
you money to replace them in case they are stolen or
damaged while you live in your apartment.
Monthly Renters Insurance: $15
Advantages: You own your castle (so to speak) and you get
more room for less money per month.
Disadvantages: You owe someone (usually a bank) money on
your house for many years and you are in charge of
everything in case something breaks. You also have to pay
property taxes too.
Monthly House Insurance and Taxes: $300
A mortgage is money that is given to you by a bank to purchase a home.
Banks will loan people money so that they can purchase houses without
having to save up all of the money necessary to purchase a house on
Like a car loan, mortgages have insurance rates that allow the banks to
make money. They give you the money to buy a house and you pay
them back over the course of many years plus a percentage of how
much you borrowed. This is how banks make money.
Use the following formula to find your monthly mortgage payment with
a 5% interest rate:
𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝑃𝑎𝑦𝑚𝑒𝑛𝑡 = 𝐻𝑜𝑢𝑠𝑒 𝐶𝑜𝑠𝑡 × 0.005368
Round to the nearest cent and record your payment in your information
You may have 1 roommate that you live with.
Expenses you may split with your roommate
Housing costs, TV service, Internet service.
Expenses you may not split with your roommate