One advantage of a mortgage loan is that it allows you to buy a home without having to pay the full purchase price upfront. Instead, you can spread out the payments over a period of many years, making the payments more affordable and manageable. This can make homeownership more accessible to a wider range of people who might not have been able to afford it otherwise.
Another advantage of a mortgage loan is that it can help you build equity in your home. As you make your monthly mortgage payments, you are gradually paying down the principal amount of the loan, which increases the amount of equity you have in the home. Over time, as the value of the home may appreciate, this can lead to a significant increase in your net worth. Additionally, as you build equity in your home, you may be able to take out a home equity loan or line of credit, which can be used to fund home improvements, pay off other debts, or cover other expenses.