Explain Why Mortgages Are Better Than Paying Rent - 550 Words

Explain Why Mortgages Are Better Than Paying Rent (Essay Sample) Content: Mortgage versus RentStudents NameInstitution Affiliation Mortgage versus RentHousing is a basic need for every person, and it is the wish of most individuals to own a house. However, purchasing a home can be an expensive and daunting affair due to the high deposits and mortgage fees associated, therefore, pushing some people to rent because it appears inexpensive (Jane, 2012). A mortgage is merely a loan given to someone to acquire a dwelling but has to repay it under agreed and specified terms and conditions. Renting, on the other hand, involves payment of monthly fees for a house or apartment to the property owner. People choose to rent homes for various reasons such as flexibility especially when one relocates frequently and does not need to spend a significant amount of money in a short period (Taylor, 2015). This paper will assess the costs and advantages associated with owning a home and demonstrate why it is better to take a mortgage and buy a house rather than rent. Paying a mortgage to own a home translates to financial freedom because an individual eventually owns the house. Although a mortgage is financially challenging at the beginning due to the considerable amount paid as a deposit, individuals finally find relief when they possess the home and acquire an asset (Jane, 2012). The house becomes an investment, which the homeowner can use as collateral to obtain a loan from the bank (Taylor, 2015). On the other hand, renting may seem cheaper at first or during the early few years, but in the end, it proves to be a financial burden mainly because the money paid could have been used to obtain a mortgage in the first place. Therefore, when deciding on home ownership it is advisable to consider the long-term financial costs, and since acquiring a mortgage proves to be a sound financial decision, it is better a choice than renting.Obtaining a mortgage to own a home leads to personal freedom. As a homeowner, one enjoys privacy and making dec isions about the appearance of the house without having to obtain permission from another person. One can decide to keep pets, hold parties, and redecorate without fear of eliciting anger from the property owner or losing part of the money invested. On the other hand, individuals who rent properties have to obtain permission from their proprietor to engage in specific activities within the leased property. Other property owners are reluctant to maintain the house in good condition thus forcing some tenants to live in deplorable apartments (Jane, 2012). Therefore, it is better to obtain a home through mortgage since it provides a sense of freedom than to rent. Paying rent can be convenient for individuals than having to deal with mortgage payments. In some cases where individuals do not have long-term commitments in certain places, it is convenient to pay rent and avoid the constraints that come with getting a mortgage. It is also advantageous, as the tenant does not have to worry ab out maintenance costs as they are all transferred to the proprietor (Ja...