VIDEO: Demystifying Mortgages

Since the start of the 21st century, over half of US households have been homeowners rather than renters. What you may or may not know is that most homeowners can’t afford to buy their homes in one cash payment; instead, they take out a mortgage. Watch this video to answer the questions about mortgages.

ARTICLE: How to Choose Between a Fixed-rate and ARM

An adjustable rate mortgage is sometimes called an ARM for short. Read the linked portion (How to Choose Between a Fixed-Rate and Adjustable-Rate Mortgage) of this article for some tips on how to choose between fixed-rate and ARMs, stopping after the Pro/Con chart the article provides.

LEARNING TARGETS:

• I can explain what a mortgage is and why most Americans require one to finance a home.
• I can use a mortgage calculator to explore how downpayment, credit score, interest rate, and term all impact the total cost of buying a home.
• I can distinguish between fixed- and adjustable-rate mortgages.