Mortgages

Mortgages: loans for the home

• In mortages there will be a principal (money you borrow), interest, and collaterals. Mortgages have collaterals, meaning if you don't pay back the lender, the house will no longer be yours anymore.

  
  

• It's a big loan that you pay back over many years, usually 15 or 30. 

  
  

• When you apply for a mortgage, the bank looks at your income, credit score, and how much you can put down as a down payment.

  
  

•  The down payment is a part of the house price you pay upfront.

  
  

•  Mortgages can have fixed interest rates, which stay the same, or adjustable rates, which can change.

  
  

• Make sure to pick a mortgage you can afford!

Read this article to learn more!

Money and Finance for Kids: How a Mortgage Works (ducksters.com)