Mortgaged for Dummies

Hey there! I'm here to help you understand what "mortgaged" means. It's a word that's often used when we talk about buying a house or property. So, imagine you really want to buy a beautiful house in the future. You might not have enough money to pay for the whole house all at once, right?

Well, that's where a mortgage comes in. When you get a mortgage, it means you're getting a loan from a bank or a lender to help you buy that house you've been dreaming of. The bank agrees to give you the money you need, but there's a catch. They want you to promise that you'll pay them back slowly over time, kind of like a monthly payment plan.

So, when you sign a mortgage agreement, you're basically saying, "Hey, bank, I promise to pay you back the money you're giving me to buy this house." The cool thing is, the house you're buying becomes the "security" or "collateral" for the loan. That means if you ever have trouble paying back the money, the bank can take the house and sell it to get their money back. But don't worry, that doesn't happen as long as you keep making your payments on time!

Now, let's say you have a friend named Maria who also wants to buy a house. She doesn't have enough money saved up, so she decides to take out a mortgage too. Both you and Maria are "mortgaging" your houses because you're getting loans to buy them. Make sense?

So, "mortgaged" is a word we use to describe something that has been bought using a mortgage. It's like saying that the house is being paid for slowly over time, rather than all at once. It's a bit like borrowing something and promising to pay it back, but instead of a toy, it's a house!

I hope that helps clear things up for you! If you have any more questions or need further explanations, feel free to ask. Learning new words can be tricky, but together we can make it easier. Keep up the great work!