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PCEs include how much is spent on durable and non-durable goods, as well as services.
Nondurable goods include food and other immediately perishable items (sometimes
called “strictly nondurable goods”) as well as some items that can be expected to last
for a substantial period of time, such as clothing.
Personal consumption expenditures are among the three main parts of the Personal Income and Outlays
report.
Personal income shows how much money consumers earn. Personal consumption expenditures
are a measure of the outlays or how much consumers spend.
Personal consumption expenditures is a measure of national consumer spending.
It compares how much money people are spending versus saving.
Example:
Housing or more generally living spaces, refers to the construction and assigned usage of houses or
buildings collectively, for the purpose of sheltering.
Beyond the property's price tag, a host of other financial and lifestyle considerations should
figure into your calculations as to whether you can afford to buy a house.
You should also evaluate the local real estate market, the economic outlook, and the
implications of how long you want to stay put.
You'll also need to consider your lifestyle needs, present, and future.
Being able to afford a new house today is not nearly as important as your ability to afford it over the
long haul. Needless to say, being able to afford a house and having a down payment doesn't answer the
question of whether now is a good time for you to act on that option.
While there are many benefits to a larger down payment, don't sacrifice your emergency savings
account completely to put more down on your home. You could end up in a pinch when unexpected
repairs or other needs arise.
Renting Consideration
Renting, also known as hiring or letting, is an agreement where a payment is made for the
temporary use of a good, service or property owned by another.
a usually fixed periodical return made by a tenant or occupant of property to the owner for the
possession and use thereof.
an agreed sum paid at fixed intervals by a tenant to the landlord
Owning a home may be a lifelong goal for many Americans but that doesn't mean it's for everyone.
Homeownership rates are currently high but this hasn’t always been the case. Families have historically
needed to either build their own homes or rent a home from someone else. Although it may not be
ideal, renting does have its advantages, too. For some people renting might make more sense for their
financial circumstances.
Both renting and buying have their financial advantages, and owning a home isn’t right for
everyone.
Unlike homeowners, renters have no maintenance costs or repair bills and they don't have to
pay property taxes.
Amenities that are generally free for renters aren't for homeowners, who have to pay for
installation and maintenance.
Renting usually requires a security deposit equal to one month’s rent, whereas a homebuyer is
required to have a sizable down payment when purchasing a home with a mortgage.
Renters have lower utility bills, greater flexibility in where they live, and access to amenities,
such as a pool or fitness room, that might otherwise be prohibitively expensive.
Access to Amenities
Another financial benefit of renting is having access to amenities that would otherwise be an
enormous expense.
No Down Payment
Another area where renters have a better financial deal is the up-front cost. Renters generally
have to pay a security deposit that is equal to one month’s rent.
Flexibility to Downsize
Renters have the option to downsize to more affordable living spaces at the end of their lease.
Unless you can buy your home entirely in cash, finding the right property is only half the battle. The
other half is choosing the best type of mortgage. You’ll likely be paying back your mortgage over a long
period of time, so it’s important to find a loan that meets your needs and budget. When you borrow
money from a lender, you’re making a legal agreement to repay that loan over a set amount of time
(albeit with interest).
The two main parts of a mortgage are principal, which is the loan amount, and the interest charged
on that principal.
What Is a Mortgage?
There are two components to your mortgage payment—principal and interest. Principal refers to the
loan amount. Interest is an additional amount (calculated as a percentage of the principal) that
lenders charge you for the privilege of borrowing money that you can repay over time. During your
mortgage term, you pay in monthly installments based on an amortization schedule set by your lender.
How to Choose the Best Mortgage?
Since this is a six-figure purchase, you're probably already wondering if it's really within your financial
reach. A calculator can help you determine how much house you can afford.
Lenders not only want you to qualify for a large loan, they want you to have some money in the bank
for the down payment and a long list of closing costs, too.
The first time you heard the phrase "30-year mortgage," you probably choked a little bit, right? That's a
long-term commitment. But there are also 10- and 15-year loans — some lenders even offer varying
loan lengths with "write your own mortgage" programs in any length inside of 10 to 30 years.
This is where most articles dive into a bunch of mind-numbing mortgage terms. Just know that there
are special types of loans for borrowers.
The price you'll pay to borrow the money for your home, the interest rate, is another key to choosing
the best mortgage loan. Mortgage rates move a lot — in fact all day, every day that the bond market is
open.
We saved the most important way to get the best mortgage for last: Shop three or more lenders. Shop
like you do for shoes, or whatever the thing is that you are most inclined to enthusiastically bargain
hunt for.
Because what you save on a home by shopping for the lender with the best mortgage rate and the
lowest origination fee could buy you a lot of shoes, smartphones and big-screen TVs.
Selling a House
Selling your home can be surprisingly time-consuming and emotionally challenging, especially if you’ve
never done it before. At times it may feel like an invasion of privacy because strangers will come into
your home, open your closets and cabinets, and poke around. They will criticize a place that has
probably become more than just four walls and a roof to you, and, to top it all off, they will offer you
less money than you think your home is worth.
Keep your emotions in check and stay focused on the business aspect of selling your home.
Hiring an agent may cost more in commission, but it can take a lot of the guesswork out of
selling.
If you decide to sell on your own, set a reasonable sale price and keep the time of year in
mind.
Prepare for the sale, don’t skimp on the visuals in your listing, and disclose any issues with the
property.
Sources/References:
https://www.britannica.com/
https://www.investopedia.com/
https://www.focus-economics.com/
https://www.incharge.org/
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