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Car payments and mortgages are very different things. A car payment is a loan for a depreciating asset. So even after you finish repaying your car, at the end y
by sersi 7y ago
Car payments and mortgages are very different things. A car payment is a loan for a depreciating asset. So even after you finish repaying your car, at the end you have an asset that's worth much less than what you paid for it.
A mortgage is different, by getting a mortgage and buying a house, you build up your assets with every payments you make, it's often better than paying a rent and not getting anything in the end... The main difference between a car and a house is that the house generally doesn't depreciate, which is why a mortgage can be a good investment.
- appleiigs 7y agoNo, car payments and mortgages are very much similar things. Excluding the land, your house depreciates. You have to spend money to maintain both. The rent expense goes to the landlord, and the mortgage interest goes to the banklord. Rent is often cheaper, saving you money. And the savings can be invested and grow in value. You get that in the end.