Money, Money, Money
As cliché as it is, money remains necessary for our daily life. Money plays an important role in our life as most of the things we have around us have monetary values. After looking through the various courses on the website I have decided to take on “Understanding the cost of buying a home”. Which I felt that learning more about it will be more relevant in the future.
Firstly I learned about the golden five-step process.
- Understand your objectives in buying a home
- Understanding the cost of buying a home and choosing a loan
- Calculating the cost involved when buying a home
- Accessing your own resources and how much you can afford to purchase
- Deciding on the appropriate home
With the help of these five-steps, it makes buying a home a lot easier. Through this I get to know to prioritize my needs and wants during the consideration process of getting a home. It makes things clearer and I am more aware of the purpose of getting a home. Next, understanding the cost of buying a home is important too as I need to be capable financially to pay for the down payment of the house which has to be paid in cash. For example in a situation that I am unable to afford buying the house, I can get loan (Home loan/mortgage loan) however I have to meet the eligibility. Another thing I have learnt is that there are two types of home loan, fixed rate or the variable rate.
I learnt that it is important to be fully aware of your own financial status, it is highly recommended to not take a loan if one is not capable of paying it. The amount of money being borrowed to you for home loan is also not given according to your wish; it will be based on certain criteria and would be calculated using the financial calculator. For bank loan the duration of maximum repayment period would be only 35 years and also will be calculated in another formula. It might seem too early to know all this, but I think it is rather useful and I can apply it in the future. Overall I felt that this e-learning program is very useful and it can greatly benefit students as well as young adults who have trouble managing their money which enables them to gain more knowledge on how to manage their finance in a way that is easily understood.