Buying Major Financial Assets Worksheet
1. Complete the “Buy or Rent” calculator using your own data. In 50-100 words answer the following: What was the recommendation? What were the factors that led to that recommendation? Do you agree or disagree with the recommendation? Why?
2. In a minimum of 100 words, explain the main benefits and drawback of renting and of owning a home?
3. Review Exhibit 7-4. In at least 100 words, summarize the steps in the home-buying process.
4. Review Exhibit 7-6. Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation. • Monthly gross income: $2,950 • Other debt, monthly payment: $160 • Down payment to be made: 15% of purchase price • Monthly property tax and insurance: $210 • 30 year mortgage at 6%
1. Review Exhibit 6-2. In at least 100 words, summarize the steps in the car-buying process.
2. Using the framework on page 199, prepare a financial comparison of buying and leasing a car with a cash price of $24,000. Show your calculations. • Down payment (to buy/finance): $4,000 • Monthly loan payment: $560 • 48 month loan and lease • Value of vehicle at end of loan: $7,200 Instruction: Complete the chart below to calculate the cost of buying a car.