What is a Mortgage? Borrowing 101: Easy Peasy Finance for Kids and Beginners

This video answers the basic question “What is a ” in a , kid-friendly way.
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The video addresses the topics below:
– What is a (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 , 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)

Hope you like the video and stick around for more finance fun! And please let us know your thoughts (or a suggestion for a video) by leaving a comment!


What is Real Estate: />
What is Down Payment: />
What is Foreclosure and How Can You Prevent it: I

What is APR or Annual Percentage Rate: 0

Mortgage Interest Rate: Fixed vs Floating: />
What is Refinancing or Mortgage Refinancing: k

FHA Loan vs Conventional Mortgage: />
What is a Credit Report: />
What is a Home Equity Loan or Second Mortgage: />

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Introduction to Real Estate and Mortgage for Kids – Mortgage, Floating and Fixed Interest Etc.: />
Key Personal Finance Terms for Kids: />
Introduction to Borrowing and Loans for Kids: />
Introduction to Finance for Kids – Earning, Saving, Investing, Compound Interest, Inflation, Net Worth, Emergency Fund:


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