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Date Submitted: 03/17/2013 12:31 PM

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There are two out of the ten that I think would play a major role in my decision about buying a new house. They are principal two and principle four. I choose principal two because it talks about how you have to give up something in order to get something else. When it comes to having a mortgage over renting most times renting is cheaper than a mortgage payment. When you own your own home you have the resposiblily of replacing something when it breaks. When you go from renting a home to buying then you might have to cut down on spending money on eating fast food or cut spending in other areas of my life. With principal four they talk about how people respond to incentives. When there are many houses on the market in one area then they might offer you some incentives like help with the down payment or lower closing cost. They might even lower the price of the house so it will sell. When buying your own home you would might have the incentive of being closer to schools, doctors, or anything that might be important to someone.

The influences of the marginal benefits are owning your own home, security of not being thrown out of your home by the land lord, and having the ability to do what you with your own home. The influences of marginal cost would be having the long term payment of a mortgage, not being able to move quickly if you needed, would have to pay all the separate bills on your own, like water, garbage or electricity.