Mortgage
A loan to buy a home, usually paid back over 15 or 30 years.
In the news
How “mortgage” came up in recent issues.
- Oct 21Netflix earned more than expected, but its stock still fell
“A mortgage is a loan to buy a home, usually paid back over 30 years.”
- Oct 20Oil is above $100 a barrel. Here's what that means at the pump.
“Mortgage rates move closely with the 10-year yield, so buying a home costs more right now.”
Learn the bigger idea
Related words
- Interest
- The price of borrowing money. Borrowers pay it, and savers earn it.
- APR
- Annual percentage rate: the yearly cost of borrowing money, shown as a percent. It includes interest and some fees. Many credit cards charge more than 20%.
- Loan term
- How long you have to pay back a loan, like 60 months for a car loan.
- Down payment
- The part of a big purchase, like a car or home, that you pay up front instead of borrowing.
- Credit score
- A number, usually from 300 to 850, that tells lenders how likely you are to pay back what you borrow. Paying bills on time is the biggest factor.
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