Apartment Living Advantages: You don’t have to be locked into a 30 year loan and someone else fixes everything for you. Disadvantages: You don’t own your home and you have to share walls with strange people you don’t know. You also have to pay a deposit on your first month in the apartment. Most people that live in apartments also pay renters insurance that covers your personal belongings and will give you money to replace them in case they are stolen or damaged while you live in your apartment. Monthly Renters Insurance: $15 House Living Advantages: You own your castle (so to speak) and you get more room for less money per month. Disadvantages: You owe someone (usually a bank) money on your house for many years and you are in charge of everything in case something breaks. You also have to pay property taxes too. Monthly House Insurance and Taxes: $300 Mortgage Time A mortgage is money that is given to you by a bank to purchase a home. Banks will loan people money so that they can purchase houses without having to save up all of the money necessary to purchase a house on their own. Like a car loan, mortgages have insurance rates that allow the banks to make money. They give you the money to buy a house and you pay them back over the course of many years plus a percentage of how much you borrowed. This is how banks make money. Use the following formula to find your monthly mortgage payment with a 5% interest rate: ℎ = × 0.005368 Round to the nearest cent and record your payment in your information packet. Roommates You may have 1 roommate that you live with. Expenses you may split with your roommate Housing costs, TV service, Internet service. Expenses you may not split with your roommate Everything else.