[prepend]

Mortgages are useful even if you don’t repay them. The mortgage gets settled upon death. And while alive it allows the lendee cash flow to live in a home.

It effectively becomes a shifted rent payment where instead of landlords, the person owns the house and services the interest.

I prefer this over the cash house method or just perpetual renting.

Mortgages are what allow the “middle class” to own homes, and not just royalty or rich.

[bArray]

> It effectively becomes a shifted rent payment where instead of landlords, the person owns the house and services the interest.

That's only true if you can keep up with payments. You'll soon learn what you do or don't own when you miss them. To be clear: You do not own your home until the last payment is made, ownership until that point is in name only.

> I prefer this over the cash house method or just perpetual renting.

Inflated house prices almost directly impacts the renting market. Rents are typically set at about 1% of purchase price [1] and then they tend to track the estimated house cost over time.

> Mortgages are what allow the “middle class” to own homes, and not just royalty or rich.

At least in the UK, a family where just the man worked would be able to buy his own home within 10 years. Mortgages allowed the housing market to set higher prices.

The problem with mortgages is that they are always looking to de-risk their investment, and as a result it prices out the the people who would need it [2].

[1] https://housinganywhere.com/United-Kingdom/calculate-rental-...

[2] https://www.ons.gov.uk/peoplepopulationandcommunity/populati...

[prepend]

> That's only true if you can keep up with payments. You'll soon learn what you do or don't own when you miss them

Yes, of course. If you can’t make payments, then you’re in trouble. Just like if you can’t pay rent.

I think the basic assumption is that everyone has to pay for shelter, in some form or another.

You do actually own your home as soon as purchase is made. But you have a lien against the home for some amount.

If you can’t make payments, you don’t lose everything. You get what equity is remaining after expenses.

But then, even when you pay off the mortgage you still have obligations like taxes, insurance, etc.