What is mortgage?

A mortgage is like a special loan that helps you buy a house, and it lets you pay for it little by little over many years.

Imagine you want to have your own house, just like the one on the street where your friend lives. But buying a house all at once would be really expensive. That’s where a mortgage comes in handy, like having a helper who lets you borrow money from a bank so you can buy the house.

You promise to pay back that borrowed money, plus some extra for using it, over many years. It's like when you get a loan for something big, and you split the cost into smaller parts called monthly payments.

When you sign up for a mortgage, the bank gives you the money to buy the house. You then pay them back each month, kind of like sharing your allowance with someone who lent you extra cash to buy that cool toy you wanted.

Over time, as you keep making those payments, you own more and more of the house until one day, it’s all yours! A mortgage is like a special loan that helps you buy a house, and it lets you pay for it little by little over many years.

Imagine you want to have your own house, just like the one on the street where your friend lives. But buying a house all at once would be really expensive. That’s where a mortgage comes in handy, like having a helper who lets you borrow money from a bank so you can buy the house.

You promise to pay back that borrowed money, plus some extra for using it, over many years. It's like when you get a loan for something big, and you split the cost into smaller parts called monthly payments.