What is the easiest way to explain a mortgage?

A mortgage is a home loan where the lender gives you money to buy a house, and you repay it monthly with interest. The home acts as collateral, meaning the lender can take it if payments stop.

Why do people choose a 30-year mortgage?

Many buyers choose 30-year mortgages because the monthly payment is lower, making it easier to qualify. The tradeoff is paying more interest over the life of the loan.

What happens if I pay extra toward my mortgage?

Extra payments reduce your principal balance directly. This lowers total interest costs and can shorten your loan term by years, helping you build equity faster.

Can mortgage payments increase even with a fixed rate?

Yes. Even with a fixed-rate mortgage, your total payment can rise if property taxes or homeowners insurance increase, especially if you pay through escrow.

Do I need perfect credit to get a mortgage?

No. Many borrowers qualify with average credit, especially through FHA, VA, or USDA programs. However, higher credit scores usually mean lower interest rates and better terms.