Casey Middle School

Technology Education •Career Project

Career 8

Technology Education


Career 8: A Place to Lay Your Head




A place to lay your head

"Poets have said that the reason to have children is to give yourself immortality.

Immortality? Now that I have five children, my only hope is that they are all out of the house before I die."

 - Bill Cosby

Photo by Alan Singer - All Rights Reserved, MPTV


Now that you've found your job, you will need or want a place of your own. For most, the choices are renting or buying. The table below may help you decide which choice best suits your needs.








Requires less "up-front" cash

  Requires a larger amount of "up-front cash" down-payment, closing costs, etc.

Maintenance and repairs are usually the responsibility of the land-lord


Maintenance and repairs are your responsibility

Property taxes and fees paid by the land-lord


Property taxes and fees paid by you

Greater flexibility and mobility shorter commitment, when your lease is up you're free to move out


If you wanted or needed to move your home would need to be sold:  may take months, or even years







You will make monthly payments on something that you will never own.


In time, you will own something of considerable value, that can be sold for profit or used as collateral for a loan
No tax advantage to renting. Your landlord gets any and all tax breaks that are available


There can be tax advantages attached to home ownership.
Rent payment is likely to increase over time


Fixed mortgage payments will remain the same for the duration of the loan
You are subject to the rules and restrictions of the landlord   You have the freedom to remodel and redecorate the home to match your needs and taste


Now that you have compared renting and buying options, find a place that will best fit what you want and need. Keep in mind such things as cost, (is it affordable) comfort (how much space do I need), and location (how far will I have to drive to work).

As you search for your home consider the following:

The home or apartment you choose for this activity must be within 50 miles of the job you chose in the last activity.
Banks will not allow you to spend more than 28% of your income on a house payment.

Also here are some important terms to remember:

Rental Terms

Rent: The amount paid to live in someone else's  home or apartment

Deposit: A set amount of money paid to the owner to cover loss or damages after you move out. A portion or all of your deposit may be returned if the apartment is returned in good shape.

Lease: The term or length of your rental agreement. Penalties or fines may be applied if you move out early.

Buyers terms:

Purchase Price: The amount paid for a home and property

Down payment: The amount of money paid at the time of purchase. The minimal amount required varies from 3% - 20% of the purchase price

Loan amount: The amount borrowed to cover the cost of the home. Essentially it is the Purchase price minus the Down payment.

Loan term: The length of your loan, usually 15-30 years. A longer loan will give you a lower monthly payment, however, the total cost of the loan will be greater.

Interest rate: The amount paid to the bank for borrowing money. The interest is in addition to the loan amount.  For example: If you borrowed $100 with an interest rate of 10%, your repayment would be $110.

Mortgage payment: The amount of your monthly home loan payment.

Which is right for you, renting or buying? Write your choice on Worksheet 8-1. If your still not sure, click the links below and follow the instructions found on the new web pages.


Using the links and resources provided begin searching for a home or rental property. Don't forget to answer the questions on Worksheet 8-1 as you go.

If you are purchasing a home click here for the loan calculator spreadsheet. If you are renting click here for the spreadsheet to calculate long term rental costs. Use the information to complete Worksheet 8-1.


After you have completed Worksheet 8-1 return to this web site and continue with the Career 9 link.

Real Estate Links
Useful Links
U.S. Zip Codes SayPlanning Home loan  Calculator
Loans & Interest Rates Monthly Budget Calculator