EFFECTS OF MORTGAGE FINANCE ON YOUNG ADULTS.

Housing is generally considered to be an important need for human survival. In that regard, the
urge to occupy a decent shelter is very paramount. Availability of decent and affordable housing
is what stands out in a developed country.

Mortgage is a pledge as a collateral for a loan, it can either be domestic or commercial.
Housing in general does not command consensus definitions among many who regards it. It
therefore, interfaces with other segments of the Country Economy i.e. Business, Environment
sectors, Financial sectors which include institutions,

Is taking a debt an investment or just a form of over consumption? Many young adults opt for
mortgage to solve their financial needs without considering the repercussions. Before we take a
mortgage loan, let us ask ourselves this questions, is it worth it? Is it okay not to pay?
As many individuals take the mortgage loan as the only solution to their financial trouble, they
will try their best to pay it off, when the truth is that mortgage loan is a long term burden, I
would say a Lemon covered in chocolate and there are those of us who will let it slide.
Certainly, deflation of house rates in the country makes it evident that there are potential risks in
the strategy, as the real estate market rises up, the thought might be that the value will increase
fast and the investors will be covered if they saw need to sell.

For instance if someone will use zero cash to buy a real estate investment, who would not hustle
for the opportunity? What if they could expect 10 %– 35% with a 7% interest am certain nobody
will hesitate to grab the opportunity. A great change took place in how many young adults would
purchase their homes as they will never realize that the “No pain, No Gain” speculation indeed
has a risk factor.

Experts will advise us to pay off our mortgage debts regardless of the real estate market, it will
give you a better chance to manage your savings when you retire. If you have a stable job that
gives you fixed income, you will have a no hustle of contributing money towards paying off your
debts. Being debt free is a very nice place to be, so we should work hard to achieve that.
For the young adults, the housing crisis alters the health of the mind so as holding a mortgage
debt. If they have an investment that they are sure of that it will give better rates than they are
saving to pay off their debts then, letting the mortgage debt slide by not paying it, will be the best
option for them.

As the constant rise of investment value on mortgage, they may be seen as a potential liability
rather than an asset by the young adults in particular. Home owners too should look at their
whole situation before working on getting a mortgage loan.