Mortgage for Dummies
noun
pronunciation: 'mɔrgədʒWhat does Mortgage really mean?
Hey there! Today, I want to talk to you about something called a "mortgage." I know this is a new word for you, but don't worry, I'm here to help you understand it easily. So, let's dive right in!
Imagine that you really want to have a big chocolate cake, but you don't have enough money to buy it all at once. What do you do? You could talk to the owner of the cake shop and ask if you can pay for the cake in small pieces over a certain amount of time. That way, you can enjoy the cake now and pay for it gradually. Well, a mortgage is like that, but for houses instead of cakes!
A mortgage is a way to borrow money from a bank or another lender (just like how you borrow toys from a friend) to buy a house or a piece of land. It's a special kind of loan that is used specifically for buying properties.
Now, let's break it down a bit more. When you get a mortgage, you agree to pay back the lender a certain amount of money every month for a specific number of years. This is kind of like promising your friend to give them one toy each week for the next month to repay the favor of borrowing their toys.
Here's another analogy to help you picture it: Think of the borrowed money as a balloon. Each time you make a monthly payment, it's like letting a little bit of air out of the balloon. As you make more payments, the balloon gets smaller and smaller until eventually, all the air is out, and the balloon is gone. Similarly, when you make all your mortgage payments, the debt gradually decreases until you have paid back everything you owe.
Now, there's one more thing we need to talk about—the interest on the mortgage. Interest is like an extra fee that you have to pay the lender for the privilege of borrowing their money. It's kind of like when you have to give your friend two toys instead of one for borrowing their toys because they want a little extra in return.
So, to sum it all up, a mortgage is a special type of loan used to buy a house or land. When you get a mortgage, you agree to pay back the borrowed money, along with some extra money called interest, in monthly installments over a set period of time.
Phew! That was a lot, but I hope it helped you understand what a mortgage is. Remember, when explaining new words, it's important to use familiar examples and be patient. If there's anything else you'd like me to explain, just let me know!
Imagine that you really want to have a big chocolate cake, but you don't have enough money to buy it all at once. What do you do? You could talk to the owner of the cake shop and ask if you can pay for the cake in small pieces over a certain amount of time. That way, you can enjoy the cake now and pay for it gradually. Well, a mortgage is like that, but for houses instead of cakes!
A mortgage is a way to borrow money from a bank or another lender (just like how you borrow toys from a friend) to buy a house or a piece of land. It's a special kind of loan that is used specifically for buying properties.
Now, let's break it down a bit more. When you get a mortgage, you agree to pay back the lender a certain amount of money every month for a specific number of years. This is kind of like promising your friend to give them one toy each week for the next month to repay the favor of borrowing their toys.
Here's another analogy to help you picture it: Think of the borrowed money as a balloon. Each time you make a monthly payment, it's like letting a little bit of air out of the balloon. As you make more payments, the balloon gets smaller and smaller until eventually, all the air is out, and the balloon is gone. Similarly, when you make all your mortgage payments, the debt gradually decreases until you have paid back everything you owe.
Now, there's one more thing we need to talk about—the interest on the mortgage. Interest is like an extra fee that you have to pay the lender for the privilege of borrowing their money. It's kind of like when you have to give your friend two toys instead of one for borrowing their toys because they want a little extra in return.
So, to sum it all up, a mortgage is a special type of loan used to buy a house or land. When you get a mortgage, you agree to pay back the borrowed money, along with some extra money called interest, in monthly installments over a set period of time.
Phew! That was a lot, but I hope it helped you understand what a mortgage is. Remember, when explaining new words, it's important to use familiar examples and be patient. If there's anything else you'd like me to explain, just let me know!
Revised and Fact checked by Mia Harris on 2023-10-28 11:35:30
Mortgage In a sentece
Learn how to use Mortgage inside a sentece
- When you want to buy a house but you don't have enough money, you can get a mortgage from a bank. This means that the bank will give you the money to buy the house, and then you have to pay them back over a long time.
- Imagine you want to start a business but you don't have all the money you need. You can take a mortgage to get the money from the bank, so you can start your business and then pay back the bank little by little.
- If you want to go to college but you can't afford to pay the tuition all at once, you can get a mortgage from a bank. This way, the bank will pay for your education and you can repay them later when you have a good job.
- Let's say you want to buy a car but you don't have all the money upfront. You can talk to a bank and ask for a mortgage. This means the bank will give you the money to buy the car, and then you can make monthly payments to repay the bank.
- Imagine you want to open a restaurant but you need a lot of money to buy all the cooking equipment and furniture. You can get a mortgage from a bank, which means the bank will lend you the money and you can gradually pay them back as your restaurant becomes successful.
Mortgage Hypernyms
Words that are more generic than the original word.
Mortgage Hyponyms
Words that are more specific than the original word.