So… what IS a mortgage?
A mortgage is a loan from a bank or a financial institution to buy a house!
A mortgage is secured by the home itself, so if the borrower defaults, the bank can sell the house and get their money back.
Mortgage payments are usually monthly. Payments have four components: Principal, interest, taxes and insurance.
Most importantly: The terms of the mortgage determine how long you have to pay it back, plus how much dough you owe up front!
Terms and conditions also specify the interest rate and whether interest is fixed or adjustable.