 TITLE: Is it Better to Own a Home or Rent? CONTENT: Is a Mortgage Cheaper Than Renting?\n-----------------------------------\nIn general, the short-term costs of renting are lower than the costs of buying a home. Taking out a mortgage usually requires a down payment (usually anywhere from 3.5% to 20%), plus all the extra costs mentioned above.\nWhen you look at the big picture, a mortgage could be cheaper in the long run. That's because landlords often gradually increase rent annually, while a fixed-rate mortgage will have the same payments for the life of the loan (though taxes and other housing-related costs such as utilities can rise). That means that while a monthly mortgage payment may initially cost more than rent, after a few years, it could be cheaper than renting due to the tax savings and an unchanged mortgage payment.\nIf you later decide to sell the home, you can make money to put toward your next home. Better yet, homeowners who pay off their mortgage will see a huge reduction in their housing costs. As a renter, you don't build any equity, and the payments never stop. END