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Comment by raverbashing | Hacker News Reader

Remember that a mortgage is pretty much a bet that the "affordability" of your house will decrease over time (that is, either it's going up in value and/or your ability to pay for it decreases).

That's the trade-off. You're fixing its price today and making payments for the next decades based on this.

If you rent, yes, the price may vary, but there's no strings attached (at least, much fewer than with a mortgage)

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Its more than that, because mortgage repayments are typically lower than rents (or at least equivalent), and include a percentage capital repayment. At the end of the mortgage period you have no monthly payments and you own a significant asset outright, which may appreciate in value. Usually the end of repayments would coincide with a career slowdown or even retirement, but with rent you're going to have to find that money for the rest of your life.

So a mortgage is:

* Cheaper monthly repayments now (typically), part of which is effectively long-term savings

* Eventual disappearance of monthly payments and rent-free living during retirement

* Eventual ownership of a significant asset, which may be cashed in or passed on via inheritance

Yes, that's a destructive definition of the word "mortgage" in that it facilities unaffordable housing.

Instead of defining it as a hedge, look at its actual intent: it's a loan, not a bet, that allows people to pay a large sum of money over time that they otherwise couldn't afford.

Access to housing isn't an investment, or a gamble, it's a basic human right.

Agreed. My condolences to anyone who finds themselves with a salaried tech job and a $5000/mo mortgage payment.

Why is that?

A $150K salary leaves around $8K a month income. Spending $5K of that on a mortgage payment doesn't leave much for anything else.

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