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Erica Sturdavant_RoughDraft

Erica Sturdavant_RoughDraft - 1 Rent or Buy Which Would You...

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1 Rent or Buy Which Would You Choose? Erica Sturdavant COM 156 Christine Belledin Axia College of University of Phoenix
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RENT OR BUY WHICH WOULD YOU CHOOSE? 2 I. Based on a person’s location and individual situation, renting a house is more economical. When considering which choice is best a person needs to consider a few different options. One should also consider the upfront costs that are associated with each. Another factor to consider is annual and maintenance cost of renting or buying. Finally, one needs to consider the length of time that they want to stay in one place. According to msnbc.com there are currently 900,000 households that have received foreclosure notices, that is equivilant to one in every 38 families who will lose their homes! Renting a house is better than owning a home because it offers financial freedom and personal freedom.
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RENT OR BUY WHICH WOULD YOU CHOOSE? 3 II. The upfront costs of renting are significantly less than buying a home. When renting the upfront cost normally consists of a deposit and first month’s rent. For example, I rented a home with 1180 square foot which was 36 square foot less than my home of 1216 square foot. The rent was $725 with a deposit of the same amount. I was also in a lease that guaranteed that the rent would stay the same for the next three years if I chose to stay that long. When buying a home a person usually is required to come up with a down payment that is around 10-20 percent of the value of the home. For example, in 2004 I purchased an $86,555 home with an initial adjustable rate mortgage (ARM) of 9%. For the first four years, my monthly payment was $690/month. However, the ARM re-adjusted after four years and my new payment ballooned to $1,200/month which is almost double my previous monthly payment. My situation is echoed across the U.S. by other home owners who were sold
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