Saturday School — What Is a Mortgage?

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Owning a home remains the great American dream. Despite the nightmarish experience of many homeowners in the wake of the bursting of the recent housing bubble, real estate has bounced back and appears to be more popular than ever.

Most people who own a home will need to take out a mortgage. The idea of a mortgage loan is simple – you borrow money from the bank to purchase a home. But the reality is more complicated.

This Khan Academy video breaks down a basic mortgage to more clearly explain your costs in taking out a mortgage. Watch the video, and you’ll learn exactly where that money goes each month, the tax advantages of a home loan and how those things change over time.

What type of mortgage do you have? Let us know by commenting below or on our Facebook page.

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