Being Smart

Life Situations

Closing Cost

Fees that are paid at the closing of a real estate transaction. This point in time called the closing is when the title to the property is conveyed to the buyer. Closing costs are incurred by either the buyer or the seller.

Mortgage Loan

A mortgage is a loan in which property or real estate is used as collateral. The borrower enters into an agreement with the lender (usually a bank) wherein the borrower receives cash upfront then makes payments over a set time span until he pays back the lender in full.

BUY vs. RENT

Renting

Buying

Advantages

Disadvantages

More fixed costs for term lease

Variable costs

Not gaining equity

Not losing equity

Equity may go up, down, or stay tangent

When lease is up- move