Here are the options IN ORDER in the fill the blank(drop down menu)

greater/less

taxability/tax deductibility

reduced/increased

property taxes/ income taxes

debt/equity

greater than 100%/ less than 100%

20%/50%

private mortgage insurance/ public mortgage insurance

repaid by borrower/ granted by the lender

principal repayment and interest charges/ interest payment and principal charges

reduced/improved

increase/ decrease

less/greater

maintenance/ operations

greater/ lower

8. The benefits and costs of homeownership What are the benefits and costs associated with home ownership? Purchasing a home is an investment. It should be made with the same knowledge, objectivity, and deliberation that you would apply to the purchase of stocks, bonds, or life insurance policies. Knowledge of the general costs and benefits associated with owning a home is necessary to make an informed investment decision. What are the benefits associated with homeownership? Owning a home offers physical and psychological as well as financial benefits. Among the physical benefits are shelter and security, while the psychological benefits include: Flexibility and a lack of long-term commitment . A feeling of stability and a sense of permanence Homes also provide financial benefits, including serving as a hedge against inflation and a shelter from taxes. The hedge against inflation occurs, because the price of houses generally increase at a rate equal to or than the rate of inflation, while the tax shelter results from the of the: Insurance premiums paid to protect the home and your contents Down payment paid to purchase the home Home maintenance and repair expenses Property taxes paid on the home This treatment on your federal and, in most states, state income taxes results in a taxable income and tax obligation. However, to realize the full value of this benefit, you must What are the costs of homeownership? The five types of costs associated with homeownership are: (1) the down payment (2) costs, including the points required by the lender; (3) the monthly mortgage payment (4) the and insurance premiums; and (5) the maintenance and operating expenses With regard to these costs: 1 I Mortgage lenders vary in the types and characteristics of the mortgage loans offered. However, virtually every mortgage lender requires a prospective homebuyer to invest some of his or her own money as a down payment. The funds contributed by the homebuyer are called and result in a loan-to-value ratio that is In general, whenever a buyer's down payment is less than the lender will require the borrower to purchase which will compensate the lender for the default of the borrower. The premium on this insurance can be added to the borrower's monthly mortgage payments. Closing costs include all of the expenses paid by the borrower when the mortgage is and consist of the down payment, the mortgage points, and appraisal and attorney's fees. Each monthly mortgage payment consists of both This can be calculated using a financial calculator or comprehensive mortgage payment tables. The advantage of the calculator over the tables is its ease of preparation and precision. In general, a house's property taxes will with its assessed value and will vary with the home's location and geographic area. Therefore, the larger and/or more expensive the house, the the house's property taxes. The cost of a house's which includes its painting, mechanical and plumbing repairs, and lawn-related upkeep, tends to be for larger and/or older homes