What the Does Should Do

What The Does Should Do

Jane and John Doe are a couple that works in California, specifically in the San Fernando Valley. I believe that due to their circumstances and financial situation, the Does should go ahead with renting instead of purchasing a house around that area. When you are calculating the cost of renting, you multiply the amount of months and the rental rate and add renter’s insurance, then you are left with a grand total of $23,172. As opposed to buying, when calculating the costs, the total amount would be $34,061.95. By subtracting the two numbers, it is very clear that being over $10,000 is a major difference for the Does. Therefore, at this time in their lives, Jane and John should really consider renting instead of purchasing a home since this can potentially be better for them financially. But if they do desire to purchase instead, they do have the funds to do so as well if that is their choice.

Before purchasing a home, Jane and John should do a few things such as research the purchase, select the best suited home, and comprehend the terms of the sale. There are a lot of different homes on the internet, they should visit a few to compare what prices and homes would suit them best. After finding a home, they should arrange finance details and select a plan which has a low interest rate and less formalities. After dealing with payment, they should make sure they completely understand terms and conditions regarding their loans and being a home owner.

The only information we are given about the Does is that they are a couple looking into purchasing their first home together. They are also comparing whether renting or buying a home is a better option for them. We also are aware of where they both stand financially. As a union, Jane and John Doe have an annual income of ninety-thousand as well as seventy-five thousand in savings, which is great. They do have a small amount of debt with credit cards and student loans. But their credit scores are respectively 680 and higher which is also good standing and fair. Beyond that, we do not know Jane and John’s character, capacity, or collateral. We also do not know anything in regards to their capital, such as if they own a car previously or have purchased a car in the past. As for conditions, as of 2016 the housing market has been steadily growing. Mortgage rates actually fell below 4 percent at the beginning of the year. Higher mortgage rates potentially mean a slower increase in house prices in 2017. From personal experience, we can see that the affordability has not been great and into the near year, it will still remain a seller’s market in most of this country. Therefore, by referring to just Jane and John’s credit scores, we can make the assumption that it is fair.

Jane and John Doe both bring home an annual income of ninety-thousand, which is a monthly income of seven thousand-five hundred (7,500).