Where you live can really affect your finances. And that’s important to know, because housing is a cost you can control, not an investment.
This path teaches how to make effective decisions about housing so you can still reach larger financial goals like living well in retirement.
Start the interactive needs assessment to develop an action plan that works with your budget, priorities, and goals.
Guiding Principle for Housing
Stick to the numbers – and keep your heartstrings in check.
How the Path Works
Learn it.
- Discover how to match finances, needs and desires to housing choices.
- Investigate communities to find advantageous locations and amenities.
- Learn how to research housing trends and where homes are appreciating.
Plan it.
- Establish your budget and research costs for various housing options.
- Use our calculators to compare mortgages and develop financial scenarios.
- Research realtors, vendors, movers, and utilities to contain costs.
Do it!
- Negotiate your home purchase price or rental lease terms and deposits.
- Select cost-effective vendors and manage costs as needed.
- Explore your new community and opportunities!
TIP: Budget first, then look for a location and home that meets your needs – whether that means buying or renting your home.
Topics Covered
The Home Purchase Path addresses the different ways people provide for housing needs. They want to:
- Buy, rent, or downsize their home
- Understand the financial environment and process
- Find housing that’s suitable for their needs and priorities at a price that lets them reach personal and financial goals
The process is multi-faceted and designed to help consumers identify their needs, compare options, and learn how to manage the costs.
In most cases, the process covers similar topics such as:
- How much house can I afford?
- When is it better to rent than to purchase a home?
- How do I know if a house is priced fairly?
- How to decide where I live.
- Can I use my home for business or work?
- Is solar a good investment?
Frequently Asked Questions
Why is housing a cost and not an investment?
Unless the home is a rental property or fix and flip (with every decision calculated to provide a return), it cannot be considered an investment. It is simply one way to fix the cost of housing for a specific period.
What types of mortgages are available to me?
There are six major types of mortgages: conventional, conforming, non-conforming, FHA-insured, VA-insured, and USDA-insured. The type of mortgage that you get depends on your credit, how much you’re borrowing, how much down payment you’re making, whether you’re a veteran, and whether you’re in a rural area.
There are two ways to handle the interest you pay for the mortgage. You can either have a fixed-rate mortgage or an adjustable-rate mortgage (ARM).
What is the average price of a home in the U.S.?
The average sales price of houses sold in the United States as of Q3 2024 is $501,100.[1]
Sources:
- Average Sales Price of Houses Sold for the United States
Federal Reserve Bank of St. Louis
10-24-24 | Accessed: 12-05-24
What is the average rent for a two-bedroom apartment in the U.S.?
The average monthly rent was $1,619 (for all bedroom types combined) in the United States as of October. 2024. For a two-bedroom apartment, the average rent was $1,699 per month according to Rent.Research.[1]
Sources:
- October 2024 Rent Report: East Coast and Midwest See Biggest Gains
Jamie Forbes, Rent.Research
11-15-24 | Accessed: 12-05-24
