The Better Choice Between Mortgage and Rent 2
The Better Choice Between Mortgage and Rent
Most Americans are determined to own homes, a culture that is deeply entrenched in the
“American dream” slogan. However, there are unending debates on what is better between
buying a home or renting one. Some of the factors that determine the decision on whether to own
or rent a residence include the marital status, income, age, interest, preference, and the
employment status. Although renting a home enables the occupants to freely shift from one place
to another, mortgage is the better option because it is economic, provides the ability to renovate
and redesign, and ensures privacy and security.
First, it is better to own a home that rent one because of the declining mortgage rates.
According to the study conducted by the GoBanking Rates, it is cheaper to purchase than rent a
single-family house in 42 states in the US (Stein, 2016). This is because of the significant
deterioration in the housing prices that occurred in the 2006 to 2011 Great Depression.
Historically, the normal national foreclosure rate is averagely 0.32 percent, but after 2011, it
increased to 4.1 percent. Although the decline in the housing prices has attracted a number of
buyers, it is uncertain whether the new owners will make profits when they decide to sell their
homes in future (Stein, 2016). However, it is cheaper to purchase a house with the current real
estate market forecasts than leasing one.
Furthermore, mortgage is better than rent because possessing a home enables the owners
to make the necessary renovations to suit their distinct needs. According to Singletary (2017),
most people normally have different specifications when looking for residential places. By
purchasing a home, the owners can change the design, furniture, and garden outlook to fit their
preferred conditions. Conversely, renters cannot change the architectural and interior patterns of
their houses. Unlike buyers who can institute their own rules, renters cannot, as they are
