Cost of Home Ownership

Paper Summary:

In this article, the writer discusses that a recent consideration of the idea of purchasing a double-wide, modular home brought about a greater knowledge of financial terms. The writer examines the terms percent, simple interest, compound interest, installment buying and the cost of home ownership. The writer concludes that after investigating the actual costs of buying a dream double-wide, the decision was made that given the additional costs and also the fact that most banks will not mortgage a double-wide, they are actually financially better off renting than buying the property. This paper is written from the first person point of view.

From the Paper:

"The interest rate charged for obtaining a mortgage loan was of special interest. We wanted to get as low a rate as possible, to keep the bottom line for purchasing the home and property to the minimum. Six percent was what we wanted. If we put $20,000 down and the mortgage was for $180,000, on a 30-year, fixed rate mortgage, a six percent loan would come to $1,079 per month. This was assuming that we would qualify for a six percent mortgage loan. Upon checking out our credit scores, we found that we would have to pay closer to 7.8 percent, since we weren't in the top group of people who qualified for these low-interest loans."
"In order to understand our credit scores we needed to find out these scores were decided. We looked at our bookkeeping and at the interests we were paying on other loans and credit cards. We were amazed at how much interest we paid per year, versus how much we were actually spending. Simple interest is all the interest we paid during the last year."

Sample of Sources Used:

• Orman, Suze, "The True Cost of Home Ownership." Yahoo.com. January, 2007. <http://biz.yahoo.com/pfg/e10buyrent/art011.html>.
• Infoplease. "Installment Buying and Selling." Infoplease.com. Website: <http://www.infoplease.com/ce6/bus/A0825286.html>.

More papers on Cost of Home Ownership:

• Research Paper # 104659 : "Home Ownership for Low-Income Households"
• Research Paper # 55402 : "Home Loans as Public Policy"
• Analytical Essay # 130538 : "Condominiums and the Cost of Homes"

APA Citation:

MLA Citation: