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Ch 9 Case - 3 Although the Zoran’s had good reasons for...

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Chapter 9: Financial Planning Case 1. How could the Bowman’s benefit from buying a home that need improvements? Bowman’s can benefit from buying a home that needs improvement because with renovations such as fixing up cracked ceiling, new paint job, and restructuring their kitchen; the Bowman’s can resale their house for more than what they purchased it for. Also, since they are renovating this old house they will get a tax break. Since the house is old their mortgage will be cheaper than purchasing a new home. 2. How might Beth Franklin have found out when mortgage rates were at a level that would make refinancing her condominium more affordable? Beth Franklin obtained a mortgage rate of 8.25 percent for a condominium six years ago. As the interest rates dropped recently she is thinking about refinancing her mortgage because there are chances that she could get lower than 8.25 percent after refinancing.
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Unformatted text preview: 3. Although the Zoran’s had good reasons for continuing to rent, what factors might make it desirable for an individual or a family to buy a home? If an individual or a family wants to purchase a home they must have a budget of what they can afford. An individual or family should also know that purchasing a home can benefit them by having their own privacy, more spacious than an apartment, and comfortable. Also, by purchasing a home you have your own property. If you were to stay in an apartment you are to pay every month and never to see that money back. However, having your own home and individual or family would pay mortgage but at the same time building equity. These factors make it desirable for an individual or family to buy a home....
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