What is a Mortgage? A Simple Explanation for Beginners

This video answers the basic question "What is a Mortgage" in a simple, kid-friendly way.
⬇️ Click SHOW MORE for details ⬇️

The video addresses the topics below:
- What is a Mortgage (loan for buying a home)
- Using a mortgage, can you get more money than the value of the home / house
- What is a down payment
- How much is the down payment (usually, 20% of the home's value)
- Can you get a mortgage if you don't have money for 20% down payment (yes, for example, using FHA mortgage)
- How is the amount you borrow using mortgage decided (based on your income, other payments like car or student loan payments, your credit score, the value of the property, down payment)
- For how long do you make mortgage payments (10-30 years)
- How frequently do you make mortgage payments (monthly)
- How much do you have to pay every month (depends on the mortgage amount, term of the mortgage and the rate of interest)
- What happens if you cannot make the monthly mortgage payment on time (grace period, followed by foreclosure)
- What happens after you make all mortgage payments and repay all the money (the home is all yours)
- Can only banks provide a mortgage (many financial institutions can, like credit unions)
- The types of interest rate for a mortgage (fixed and floating)

⬇️ RELATED VIDEOS ⬇️

⬇️ RELATED PLAYLISTS ⬇️

------------------------------------------------------

** Easy Peasy Money **
A Fun Money & Budgeting Book for Kids. The book covers all aspects of money: Earning, Spending, Saving, Investing, Borrowing and Budgeting.

** Easy Peasy Investing **
A Fun Investing Book for Kids. The book covers all aspects of investing: Compounding, Risk-Return, Liquidity, Asset Classes, Diversification, Asset Allocation and Portfolio Rebalancing.

** Easy Peasy Banking **
A Fun Banking Book for Kids. The book covers all aspects of banking: Banks, Credit Unions, Checking & Savings Accounts, ATMs, Checks, CDs and Online & Virtual Banking.

----------------------------------------------

TWITTER: @easypeasyfinanc

#Mortgage
#Borrowing
#Finance101
#FinanceForKids
#FinanceForBeginners
#EasyPeasyFinance

Credits:

--------------------------------------------------------------

-----------------------------------------------

The information presented in the video and the description is for educational purpose only. The presenter(s) / speaker(s) / Easy Peasy Finance are not financial advisors, and do not provide investment advise. Please consult a qualified financial advisor before making any investment decision.