{"id":4629,"date":"2023-06-16T02:12:57","date_gmt":"2023-06-16T02:12:57","guid":{"rendered":"https:\/\/content.one.lumenlearning.com\/quantitativereasoning\/?post_type=chapter&#038;p=4629"},"modified":"2025-08-28T03:17:50","modified_gmt":"2025-08-28T03:17:50","slug":"homeownership-apply-it-1","status":"web-only","type":"chapter","link":"https:\/\/content.one.lumenlearning.com\/quantitativereasoning\/chapter\/homeownership-apply-it-1\/","title":{"raw":"Homeownership: Apply It 1","rendered":"Homeownership: Apply It 1"},"content":{"raw":"<section class=\"textbox learningGoals\">\r\n<ul>\r\n\t<li>Evaluate the pros and cons of renting and homeownership<\/li>\r\n\t<li>Calculate the monthly payment and interest expenses of a mortgage<\/li>\r\n\t<li>Interpret and understand an amortization schedule<\/li>\r\n<\/ul>\r\n<\/section>\r\n<h2>Real Estate Journey: Navigating Renting and Buying in the Housing Market<\/h2>\r\n<center>\r\n[caption id=\"attachment_6886\" align=\"aligncenter\" width=\"500\"]<img class=\"wp-image-6886\" src=\"https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/18\/2023\/06\/16200001\/pexels-oleksandr-canary-islands-12955837_50-300x200.jpg\" alt=\"A small model house with keys\" width=\"500\" height=\"333\" \/> Figure 1. Help Alex on his journey of renting and buying[\/caption]\r\n<\/center>\r\n<p>&nbsp;<\/p>\r\n<p>Welcome to your journey into the world of real estate!\u00a0To guide you through this journey, we'll follow the story of Alex, a recent graduate who just landed his dream job. Eager to find a place of his own, he's ready to navigate through the challenging terrain of homeownership. With Alex's perspective, we can explore and understand the benefits and drawbacks of renting and homeownership, as well as the intricate details of home buying, like monthly mortgage payments, interest expenses, and the all-important amortization schedule. Let's jump right in! Let's start by comparing renting and buying.<\/p>\r\n<section class=\"textbox tryIt\">[ohm2_question hide_question_numbers=1]9649[\/ohm2_question]<\/section>\r\n<p>Similarly, there are certain benefits to buying a home compared to renting.<\/p>\r\n<section class=\"textbox tryIt\">[ohm2_question hide_question_numbers=1]9650[\/ohm2_question]<\/section>\r\n<p>When Alex decides to buy a house, he must consider additional costs, including closing costs.<\/p>\r\n<section class=\"textbox tryIt\">[ohm2_question hide_question_numbers=1]9651[\/ohm2_question]<\/section>\r\n<p>Let's say Alex has chosen a lovely house listed for [latex]$175,000[\/latex]. He's saved a [latex]20\\%[\/latex] down payment. His bank has offered him a [latex]30[\/latex]-year mortgage at [latex]4.5\\%[\/latex] interest.<\/p>\r\n<section class=\"textbox tryIt\">[ohm2_question hide_question_numbers=1]9652[\/ohm2_question]<\/section>\r\n<p>Now that we've figured out the down payment, let's move on to determine the amount you'll need to borrow from the bank. This is also known as the mortgage amount.<\/p>\r\n<section class=\"textbox tryIt\">[ohm2_question hide_question_numbers=1]9654[\/ohm2_question]<\/section>","rendered":"<section class=\"textbox learningGoals\">\n<ul>\n<li>Evaluate the pros and cons of renting and homeownership<\/li>\n<li>Calculate the monthly payment and interest expenses of a mortgage<\/li>\n<li>Interpret and understand an amortization schedule<\/li>\n<\/ul>\n<\/section>\n<h2>Real Estate Journey: Navigating Renting and Buying in the Housing Market<\/h2>\n<div style=\"text-align: center;\">\n<figure id=\"attachment_6886\" aria-describedby=\"caption-attachment-6886\" style=\"width: 500px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-6886\" src=\"https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/18\/2023\/06\/16200001\/pexels-oleksandr-canary-islands-12955837_50-300x200.jpg\" alt=\"A small model house with keys\" width=\"500\" height=\"333\" srcset=\"https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/18\/2023\/06\/16200001\/pexels-oleksandr-canary-islands-12955837_50-300x200.jpg 300w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/18\/2023\/06\/16200001\/pexels-oleksandr-canary-islands-12955837_50-1024x683.jpg 1024w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/18\/2023\/06\/16200001\/pexels-oleksandr-canary-islands-12955837_50-768x512.jpg 768w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/18\/2023\/06\/16200001\/pexels-oleksandr-canary-islands-12955837_50-1536x1024.jpg 1536w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/18\/2023\/06\/16200001\/pexels-oleksandr-canary-islands-12955837_50-2048x1365.jpg 2048w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/18\/2023\/06\/16200001\/pexels-oleksandr-canary-islands-12955837_50-1200x800.jpg 1200w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/18\/2023\/06\/16200001\/pexels-oleksandr-canary-islands-12955837_50-65x43.jpg 65w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/18\/2023\/06\/16200001\/pexels-oleksandr-canary-islands-12955837_50-225x150.jpg 225w, https:\/\/content-cdn.one.lumenlearning.com\/wp-content\/uploads\/sites\/18\/2023\/06\/16200001\/pexels-oleksandr-canary-islands-12955837_50-350x233.jpg 350w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><figcaption id=\"caption-attachment-6886\" class=\"wp-caption-text\">Figure 1. Help Alex on his journey of renting and buying<\/figcaption><\/figure>\n<\/div>\n<p>&nbsp;<\/p>\n<p>Welcome to your journey into the world of real estate!\u00a0To guide you through this journey, we&#8217;ll follow the story of Alex, a recent graduate who just landed his dream job. Eager to find a place of his own, he&#8217;s ready to navigate through the challenging terrain of homeownership. With Alex&#8217;s perspective, we can explore and understand the benefits and drawbacks of renting and homeownership, as well as the intricate details of home buying, like monthly mortgage payments, interest expenses, and the all-important amortization schedule. Let&#8217;s jump right in! Let&#8217;s start by comparing renting and buying.<\/p>\n<section class=\"textbox tryIt\"><iframe loading=\"lazy\" id=\"ohm9649\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=9649&theme=lumen&iframe_resize_id=ohm9649&source=tnh\" width=\"100%\" height=\"150\"><\/iframe><\/section>\n<p>Similarly, there are certain benefits to buying a home compared to renting.<\/p>\n<section class=\"textbox tryIt\"><iframe loading=\"lazy\" id=\"ohm9650\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=9650&theme=lumen&iframe_resize_id=ohm9650&source=tnh\" width=\"100%\" height=\"150\"><\/iframe><\/section>\n<p>When Alex decides to buy a house, he must consider additional costs, including closing costs.<\/p>\n<section class=\"textbox tryIt\"><iframe loading=\"lazy\" id=\"ohm9651\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=9651&theme=lumen&iframe_resize_id=ohm9651&source=tnh\" width=\"100%\" height=\"150\"><\/iframe><\/section>\n<p>Let&#8217;s say Alex has chosen a lovely house listed for [latex]$175,000[\/latex]. He&#8217;s saved a [latex]20\\%[\/latex] down payment. His bank has offered him a [latex]30[\/latex]-year mortgage at [latex]4.5\\%[\/latex] interest.<\/p>\n<section class=\"textbox tryIt\"><iframe loading=\"lazy\" id=\"ohm9652\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=9652&theme=lumen&iframe_resize_id=ohm9652&source=tnh\" width=\"100%\" height=\"150\"><\/iframe><\/section>\n<p>Now that we&#8217;ve figured out the down payment, let&#8217;s move on to determine the amount you&#8217;ll need to borrow from the bank. This is also known as the mortgage amount.<\/p>\n<section class=\"textbox tryIt\"><iframe loading=\"lazy\" id=\"ohm9654\" class=\"resizable\" src=\"https:\/\/ohm.one.lumenlearning.com\/multiembedq.php?id=9654&theme=lumen&iframe_resize_id=ohm9654&source=tnh\" width=\"100%\" height=\"150\"><\/iframe><\/section>\n","protected":false},"author":23,"menu_order":22,"template":"","meta":{"_candela_citation":"[{\"type\":\"copyrighted_video\",\"description\":\"Wooden House Moder, Keys and Contract on Table\",\"author\":\"Oleksandr Canary Islands\",\"organization\":\"Pexels\",\"url\":\"https:\/\/www.pexels.com\/photo\/wooden-house-moder-keys-and-contract-on-table-12955837\/\",\"project\":\"\",\"license\":\"arr\",\"license_terms\":\"\"}]","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"part":4885,"module-header":"apply_it","content_attributions":[{"type":"copyrighted_video","description":"Wooden House Moder, Keys and Contract on Table","author":"Oleksandr Canary Islands","organization":"Pexels","url":"https:\/\/www.pexels.com\/photo\/wooden-house-moder-keys-and-contract-on-table-12955837\/","project":"","license":"arr","license_terms":""}],"internal_book_links":[],"video_content":null,"cc_video_embed_content":{"cc_scripts":"","media_targets":[]},"try_it_collection":null,"_links":{"self":[{"href":"https:\/\/content.one.lumenlearning.com\/quantitativereasoning\/wp-json\/pressbooks\/v2\/chapters\/4629"}],"collection":[{"href":"https:\/\/content.one.lumenlearning.com\/quantitativereasoning\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/content.one.lumenlearning.com\/quantitativereasoning\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/quantitativereasoning\/wp-json\/wp\/v2\/users\/23"}],"version-history":[{"count":10,"href":"https:\/\/content.one.lumenlearning.com\/quantitativereasoning\/wp-json\/pressbooks\/v2\/chapters\/4629\/revisions"}],"predecessor-version":[{"id":15770,"href":"https:\/\/content.one.lumenlearning.com\/quantitativereasoning\/wp-json\/pressbooks\/v2\/chapters\/4629\/revisions\/15770"}],"part":[{"href":"https:\/\/content.one.lumenlearning.com\/quantitativereasoning\/wp-json\/pressbooks\/v2\/parts\/4885"}],"metadata":[{"href":"https:\/\/content.one.lumenlearning.com\/quantitativereasoning\/wp-json\/pressbooks\/v2\/chapters\/4629\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/content.one.lumenlearning.com\/quantitativereasoning\/wp-json\/wp\/v2\/media?parent=4629"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/quantitativereasoning\/wp-json\/pressbooks\/v2\/chapter-type?post=4629"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/quantitativereasoning\/wp-json\/wp\/v2\/contributor?post=4629"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/content.one.lumenlearning.com\/quantitativereasoning\/wp-json\/wp\/v2\/license?post=4629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}