Understanding Housing in Personal Finance

Front

Mortgage

Back

Loan for buying a home

Front

Down Payment

Back

Initial payment on a house, usually 20%

Front

Interest Rate

Back

Cost of borrowing money, expressed as a percentage

Front

Fixed-Rate Mortgage

Back

Interest rate stays the same for the loan term

Front

Variable-Rate Mortgage

Back

Interest rate can change over time

Front

Property Taxes

Back

Taxes paid by property owners, based on property value

Front

Rent vs. Buy Scenario

Back

Compare monthly rent to mortgage payments

Front

Housing Market Trend: Supply

Back

Number of homes available for sale

Front

Housing Market Trend: Demand

Back

Number of buyers looking for homes

Front

Equity

Back

Home value minus mortgage balance