Demystifying Mortgages

Should you just pick a mortgage with the lowest interest rate?

• It depends.

• YES!

• NO WAY!

This type of APR stays the same during the duration of your loan:

• Fixed

• Adjustable

What is amortization? 

• Another type of loan

• A payment schedule 

• How you loan repayment is broken installments over. fixed period of time

In the video’s amortization example, the borrower makes a $711 payment, where $375 goes toward paying interest and $336 goes toward paying the principal. Should the borrower be worried that they’ll never pay off the mortgage? Why or why not?

What important aspects should you consider BEFORE buying a home? (select all that apply)

• Knowledge of what types of mortgages are available to you

• Being honest about your budget and what you can afford

• Understanding if you are ready to take on the responsibility of owning a home

• If you want to have a front porch or backyard

Why is choosing an appropriate mortgage potentially even more important than choosing an appropriate auto loan?