Week 9 Assignment Developing Your Financial Blogas We Appr ✓ Solved

For this final project, you will create a financial blog post that directly relates to one of the main concepts we learned this term in our Milestones: mortgages, credit cards, and insurance. Part 1: Looking for inspiration. Let’s first start by looking at three popular blogs, such as: The Financial Samurai, The Mortgage Professor, or The Points Guy. Pick one of these websites. Describe the audience of this post and how the website tailors its writing to engage their readers.

Next, what will be the name for your blog? your personal mortgage manager Who will be your intended audience? Your intended audience: people who want to buy a house, people who have question or problems on their mortgage. How will you tailor your writing to engage your audience? What kinds of themes will you use in your writing? What subjects might your readers be interested in?

Part 2: Developing Your Blog Post First, let’s find a name for your blog post. Create a catchy-title like “Financial Samurai” that appeals to your audience. Your Blog Title: your personal mortgage manager. Next, we’re going to plan a post for your blog. You must choose a topic that relates to one of the concepts we’ve covered in this course (mortgages, credit cards, insurance). You must also use at least two formulas/concepts you’ve learned in this course.

Introduction: Hook: Owning a home is part of the American dream for many Americans. but the high house price to income ratio is making us slaves to the mortgage. Body Paragraph 1: what is Mortgage, what should we know about it before we apply for it. Body Paragraph 2: Average house prices have been consistently rising faster than average income in most developed countries. Body Paragraph 3: Why house prices keep increasing, who will get benefit from it. Body Paragraph 4: Should we rent a house instead of buy one? Body Paragraph 5: How to choose wisely with the knowledge that we’ve learned from our class. Conclusion: It is time for us to plan safely and smartly for our future. don't let yourself get caught on the endless belt of debt, say no to mortgage slave.

Part 3: References Finally, a good post normally is connected to some external resources to provide support. It is hard to believe someone who doesn’t quote well-regarded facts. Your paper is required to have at least two different references that you cite in your paper. Please identify at least two reputable sources to reference in your blog post. Include the link/permalink to this article so that you can access it when you write your paper.

Paper For Above Instructions

Your Personal Mortgage Manager: Say No to Mortgage Slave

Owning a home is one of the most significant milestones in many Americans' lives, often associated with independence, stability, and financial growth. However, the increasing house price to income ratio is forcing many new homeowners into a cycle of debt, creating what can be described as 'mortgage slavery.' In this blog post, we will explore key aspects of mortgages, the historical trends that have led to the current housing market, and propose informed decisions for prospective homeowners.

Understanding Mortgages

A mortgage is a loan specifically for the purchase of a property, with the property serving as collateral. It is essential for potential homeowners to grasp the nuances of lending practices, types of mortgages, and what lenders look for before application (Campbell & Cocco, 2003). An individual should consider their financial situation, credit score, and the overall housing market before diving into the process.

The Rising Cost of Homeownership

One of the trends observed in developed economies is the rapid increase in average house prices relative to wages. According to recent studies, average house prices have indeed been rising faster than average incomes, leading to affordability issues for many (Fidler & Sabir, 2023). In several major urban areas, the increase in housing prices has been staggering, leaving many aspiring homeowners stranded. Factors contributing to this rise include increased demand due to urbanization, low-interest rates, and limited housing supply.

Analyzing Price Trends

The continuous uptrend in housing prices can be linked to economic growth but often favors those already affluent or investors in the real estate market. As the gap widens between rich and poor, it is vital to examine who truly benefits from these increasing prices. Property developers and investors usually reap the benefits, perpetuating a cycle that leaves first-time homebuyers at a disadvantage. The question remains: is it sensible to encourage purchasing a home when the economic fundamentals suggest renting might be a better alternative?

Renting vs. Buying

New homeowners may want to ponder the choice between renting and buying a property. Rent offers flexibility and minimal commitment, which can be appealing in uncertain job markets (Iacono, 2009). Buyers, on the other hand, should calculate the financial implications, such as their long-term plans. Will house prices stabilize or decline? Utilizing formulas such as the application of percentages and compound interest gives insight into the long-term costs associated with mortgages, aiding decision-making. Prospective buyers must consider their financial resilience if prices fluctuate.

Making Informed Decisions

As we reflect on the vast knowledge acquired throughout this course, it is pivotal to apply these lessons toward real-world decision-making. An informed decision acknowledges the principles of risk management we explored in class. Each individual should emphasize prudent financial planning by assessing their needs, researching market trends, and never hesitating to consult experts when necessary.

Conclusion

In conclusion, it is time for us to plan safely and smartly for our future. Don't let yourself get caught on the endless belt of debt; say no to being a mortgage slave. It's crucial to understand what's best for ourselves and to undertake financial education earnestly. Homeownership should be a source of pride rather than a burden. Let us strive to be well-informed consumers who refuse to fear complicated financial concepts, embarking instead on a journey to financial freedom.

References

• Campbell, J. Y., & Cocco, J. F. (2003). Household Risk Management and Optimal Mortgage Choice. The Quarterly Journal of Economics, 118(4), 1449–1494.
• Fidler, D., & Sabir, H. (2023). The cost of housing is tearing our society apart. Link.
• Iacono, T. (2009). More Housing Charts: Existing-Home Prices vs. Median Income, Interest Rates. Link.
• World Economic Forum. (2019). Annual Meeting Davos-Klosters, Switzerland, 22—25 January.