Mortgages: Renting Money for a House

Alright, so a mortgage is basically when you really, really want a house,

but you don’t have house money, so the bank goes, “Hey, we’ll give you the

money now, but you gotta pay us back for, like, your entire life.”

So you say yes, because what are you gonna do, not live in a house? And then the bank’s

like, “Cool, here’s the deal: you borrow a ton of money,

and every month you give us some back, plus extra, because screw you.”

And that extra part? That’s called interest. That’s the bank’s way of saying, “Thanks for existing.”

Now here’s the fun part: at the start, almost none of your payment goes to the house.