What is a mortgage in simple terms?
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What is a mortgage in simple terms?
You want a house, but houses cost a fortune — way more money than most people have sitting in their pocket. So how does anyone ever buy one? The answer is a mortgage, which sounds complicated but is really just a special kind of deal between you and a bank.
Here's how it works: the bank lends you the money to buy the house right now. You get to move in today, even though you don't have all the cash. In exchange, you promise to pay the bank back over many years — usually fifteen or thirty years — in small chunks called monthly payments.
