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6. What are the advantages and disadvantages of buying versus renting a​ home? 7. What three...

6. What are the advantages and disadvantages of buying versus renting a​ home?

7. What three factors determine the maximum amount a bank will finance for a home​ mortgage?

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Answer #1

6. Advantages of buying

  • Creation of Asset
  • Tax benefits on the home loan
  • The long -term investment
  • Privacy
  • The option of a reverse mortgage is also available

Disadvantages of buying

  • High initial Outlay
  • Can't shift afterward
  • Maintenance cost
  • Property value can fall in the future

Advantages of Renting:

  • Rents are lower
  • Flexibility or possibility of mobility or shifts

Disadvantages of Renting:

  • No value or equity creation
  • No improvement in credit score

7. The factors determine the maximum amount a bank will finance for a home​ mortgage:

  1. Debt to income ratio
  2. Credit score and credit history
  3. Financial profile
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