No, rent is not the same as a mortgage.
The main difference between rent and a mortgage is that a mortgage is a loan used to purchase a house or other real estate, while rent is what you pay to occupy an apartment or home for a specific period of time.
While rent and mortgage payments can often be similar in terms of dollar amounts, the two terms are NOT the same.
The only thing that rent and mortgage have in common is that both refer to monies paid for housing, and both payments are typically made monthly.
Should you buy or rent an apartment?
The debate rages on about whether it’s best to rent or buy a home. Many people decide what to do based primarily on their emotions and then try to find facts that support the decision they’ve already made (see 8 reasons to rent vs. buy).
For decades, the general rule of thumb was that it made more sense to buy a home than rent, but as evidenced by the great financial crises of 2007 / 2008, home values do not always rise.
Renting offers more flexibility than buying. You can move when your lease expires and you don’t have to worry about selling your home. You can also save money on costly repairs because landlords will generally handle maintenance issues.
Buying a home is a huge financial commitment because you are responsible for the home and it is harder to move if your life circumstances change.
What should you do?
Ultimately, this is a hard question to answer as no single solution works for everyone. You need to know what your needs are and how they fit into the current environment. There are pros and cons to both renting and buying a home, so it makes sense to assess your personal circumstances so you can make the right choice for your lifestyle needs. The best tip is to get educated on the pros and cons of renting. Check out some resources below on the topic.
