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Explain how a mortgage is different than rent. Identify a benefit of each.

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Answer:

A mortgage is a repayment of a loan which was given to you to buy a home.

Rent is a payment to someone who owns the building in which you live.

Step-by-step explanation:

A mortgage is a loan used to buy a house and guaranteed by the same house by putting it as a collateral. For example; The loan you took to buy your property.

Rent is a payment that you give the property owner for the right to occupy the place for a specific period. You do not get any ownership rights in exchange.

Benefits: A mortgage is a good thing when you have a place to live somewhere, without paying monthly apartment rent, which means to lose money.

Rent helps low-income households to live in private rental dwellings at a low price.

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