Personal Finance Essay

1. Are you considered a default pretend? How would a loaner evaluate you based on the five Cs of character capital, collateral, and conditions? How could you plan to key out yourself to a greater extent(prenominal) attractive to a lender in the future? I do non believe I would be considered a Default Risk because I have a good credit worst and I try to throw off what I spend on my credit cards that aforementioned(prenominal) month or fairly quickly so I dont have to pay high interest rates. Based on the five Cs Character-I would be considered as a good character due to employment, residential, and repayment history. Capacity- I try not to carry high balances on my credit cards, therefore, my debt obligation is fairly low. Capital-Capital would be considered mediocre due to my asset and collateral base. Collateral- I would no have much collateral because most of my assets be in my spouses name. Conditions-I may be considered a risk under conditions considering I educate for the auto industry.To make myself more attractive to a lender, I would probably use my credit cards more often and build up my credit history to make it stronger. I would also add my name to my spouses owe because he owned the home before he met me. I would also increase my income by working full-time opposed to part-time that way I could show that I would be able to afford to have a higher balance on my credit card.2. Identify the last 2 items (consumer goods and durable goods) you bribed. Alternatively, select any dickens items you purchased during the last two months. Choose diverse items and analyze each item interms of the following factorsa. Why did you subvert that item? How did you ensconce what to get? I recently bought an Ipad and a new pair (good) of running lieu. I bought the Ipad basically for a portable electronic reading device and something I bring with to pass on up with my school work and it will also assist me with my job at work. I also decided to buy a really good pair of running shoes for walking & jogging. I usually purchase shoes that cost around $40-$50 but have never been happy with them.Where did you get your information or so the item?I did a lot of investigate online and I also asked some of my peers who have these items their opinions and I also read reviews.Where did you go to buy the item? I bought my Ipad at the Apple store and I bought my shoes online.In what kind of market did you make your purchase? The market seems to be picking up so I would say it is a striving market.Where did the money come from for your purchase? I employ money that was given to me as a gift from my parents to buy the Ipad and the shoes came from money I bring in at work.How much did you pay for the item, and how did you pay for it? The Ipad was approximately $400.00 and the shoes were approximately $150.00h. How would you rate your satisfaction with your purchase? I am very happy with both of my purchases. I am glad I did the research bef ore I bought them and sometimes its better to get the more expensive item because I do believe you get what you pay for.i. If or when you purchase that type of item again, what might you do differently? The only thing I would do differently is be a little more patient and wait for the items to go on sale or find a coupon to use.3. For a car you would corresponding to convey, calculate and compare what it would cost you to buy it and to lease it. Use the Lease versus bargain Calculator athttp//www.leaseguide.com/leasevsbuy.htm. What would be the advantages of owning the car? What would be the advantages of leasing it? For your lifestyle, needs, and uses of a fomite, should you buy or lease?2014 Ford venturer to lease it for 24 month, 12,000 miles per year with an A-Plan discount and $2500 down payment the payment would be $335 per month. To Purchase the vehicle on a 60 month loan with $2500 down would be $589 per month.The advantages of buying a vehicle is that it is a major inve stment, better finance rates, you do not have worry about miles, you drive out sell it to recover some equity or trade it in to purchase something new, you can keep it as long as you would like. It is your vehicle once it is paid off.The advantages of leasing a vehicle would be a low monthly payment, no down payment, getting a new car more often, few maintenances concerns, not having to worry about selling the vehicle, and GAP coverage is usually included if the vehicle is totaled.In our family we do both we have one vehicle we purchased and one we lease. I do not drive a lot of miles and I work at a dealership so I like to get a new vehicle every 2 years. I also like not having to worry about the vehicle breaking down etc We also own a vehicle so we do not have to worry about going over mileage if we take thoroughfare trips, we have something that is ours to use as equity and we have a very good interest rate.4. You are considering purchasing an existing single-family house for $200,000 with a 20 percent down payment and a thirty-year fixed-rate owe at 5.5 percent. a. What would be your monthly mortgage payment? The payment would be $908.46 per month. b. If you decided to buy two points for a rate of 5 percent, how much would you save in monthly payments? Would itbe worth it to buy the points? Why, or why not? The payment would be $888.75 and yes it would be worth it because you are saving $22.71 per month and that would add up over a 30-year period to $8175.60.c. When should you consider an adjustable-rate mortgage? If you are only think on having a mortgage for a short time it would be wise to consider an adjustable-rate mortgage because the rate stays the same for 5 years then it could change afterwards either or the better or the rates could go up significantly.