Final - A New House - Decision

Final - A New House - Decision - A New House Decision 1 A...

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A New House – Decision 1 A New House - Decision Desiree’ Forgason XECO/212 November 07, 2010 Sarahbeth Spasojevich
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A New House – Decision 2 We have considered purchasing a new home; we are going to involve all the 10 principles of economics in our decision to see whether it is the right time to buy. The most important part of purchasing a home is the financial area with income, taxes, and annual percentage rates. If you are not prepared to give up something to get something then it is not the right time to buy. We have to remember even though the APR’s may be low and we have our down payment or even if we are using HUD as a first time buyer to eliminate closing cost or no fees at all there may still be one depending on our situation. Purchasing a new home is a big step not only the financial part of if but, also the area we chose and the economy at this point and time. We must think ahead to how the economy will be now and later, as well as the housing area we chose. * Will the neighborhood be a good choice for our children * Will our house be a smart investment in terms of efficiency and equity There are nine steps when buying a home: 1. Figure out how much you can afford 2. Know your rights 3. Shop for a loan 4. Learn about home buying programs 5. Shop for a home 6. Make an offer 7. Get a home inspection 8. Shop for homeowners insurance 9. Sign papers We need to determine if a recession will influence our decision in purchasing a new home and if it is the wrong time to buy. A recession could cause job lose and no income to pay our mortgage or even placing us in default to take out a loan on our home. Taking a loan out on our home to make ends meet could cause us to pay double for our home and never actually own it.
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A New House – Decision 3 Trade offs are important when purchasing a new home, because you have to be willing to give up miscellaneous items to get where you want to be, extra expenses are not a good idea when purchasing a new home. We could consider a yard sale to get rid of old items to replace them with new items for our new house or just to maintain household needs during the move. With the 10 principles of economics, one also has to look at comparing the marginal benefits with the marginal costs on whether it is a good idea to purchase a new home or not. The strength of the economy can affect the marginal benefits and the marginal costs and that will affect our decision on whether or not to purchase a new home. The strength of our economy depends upon the domestic and international trade as we trade with other countries and with each other in this country. A decision to buy a new home depends upon the amount of money saved, the strength of the economy, and dependability of one’s career. The first principle of economics in our decision to purchase a new home is the ninth principle,
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This note was uploaded on 03/05/2011 for the course XECO 212 taught by Professor Cohen during the Spring '10 term at University of Phoenix.

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Final - A New House - Decision - A New House Decision 1 A...

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