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Real EstateMortgages

How a Mortgage Works

A loan to buy a home, paid over decades

A mortgage's name means 'dead pledge.' So where does the money you pay on one every month actually go?

You'll find out

  • Where one payment really goes
  • Why a mortgage is a 'dead pledge'
  • How long before a home is at risk

Why it matters

Mortgages are the biggest debt Americans carry. Knowing how one works turns the fine print into plain sense.

About 3 min6 interactive slides · 5 questionsLesson 110 · Zone 13

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  2. 111MortgagesThe 30-Year Mortgage Is RareFew countries lock a home loan's rate for 30 years
  3. 112MortgagesInterest Comes FirstEarly payments are mostly interest
  4. 113MortgagesWhat a Home Really CostsThe price tag versus everything you pay
  5. 114Home EquityDown Payments and EquityThe part of the house that's really yours
  6. 115HousingRenting Is Throwing Money AwayOwners have money they never get back too
  7. 116OwnershipThe Landlord's GameLizzie Magie invented the game that became Monopoly, to show how owning land pulls in everyone's rent, and was paid $500
  8. 117Rental PropertyGetting Paid by a BuildingHow rental income works