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This is part of a collection of definitions on Financial Literacy. This defines the term mortgage.
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Algebra >> Expressions, Equations, and Inequalities >> Numerical and Algebraic Expressions

Definition--Financial Literacy--Mortgage

Mortgage

Mortgage

Topic

Financial Literacy

Definition

A mortgage is a loan used to purchase real estate, secured by the property itself.

Description

Mortgages are a critical component of real estate transactions, allowing individuals to buy homes without paying the full price upfront. Understanding mortgages is essential for financial planning and homeownership. In real-world applications, borrowers must navigate interest rates, loan terms, and down payments. Algebraically, mortgage calculations involve amortization schedules and interest computations, teaching students about long-term financial commitments. A teacher might explain, "A mortgage is a special kind of loan for buying a house, where the house is used as security for the loan."

Mortgage
A monthly mortgage payment for a house is for 
paying back the loan to purchase the house.

For a complete collection of terms related to Financial Literacy click on this link: Financial Literacy Collection.

Common Core Standards CCSS.MATH.CONTENT.HSA.CED.A.1
Grade Range 8 - 10
Curriculum Nodes Algebra
    • Expressions, Equations, and Inequalities
        • Numerical and Algebraic Expressions
Copyright Year 2023
Keywords financial literacy, mortgage, Mortgages