Finanzen · Glossar
What is Mortgage?
Schnelldefinition
A loan used to buy real estate, with the property serving as collateral. The most common long-term debt for individuals.
Vollständige Erklärung
A mortgage is a secured loan used to purchase real estate, with the property itself as collateral. If the borrower stops paying, the lender can foreclose and sell the property. Mortgages typically have 15- or 30-year terms, fixed or adjustable rates, and require a down payment (usually 5–20%). The monthly payment (PITI) includes Principal, Interest, Taxes, and Insurance. The interest portion is tax-deductible in many countries (US, for primary residences). PMI (Private Mortgage Insurance) is required when down payment is below 20%, and is removed once equity reaches 78%. Mortgages are "amortized" — payments are equal, but the principal/interest ratio shifts over time.
Verwandte Rechner
Calculators that use or explain Mortgage.
Verwandte Begriffe
More from Finanzen
APR (Annual Percentage Rate)
The yearly cost of a loan, expressed as a percentage, including most fees. Used when borrowing money.
APY (Annual Percentage Yield)
The yearly return on a deposit or investment, including the effect of compounding. Used when saving money.
Compound Interest
Interest calculated on the initial principal AND on the accumulated interest from previous periods. The engine of long-term wealth.
Simple Interest
Interest calculated only on the original principal, not on accumulated interest. Used in short-term and consumer loans.
Principal
The original sum of money borrowed or invested, not including interest. The base on which interest is calculated.
Amortization
Spreading loan payments over time so each payment covers both principal and interest, with the loan fully paid off at the end.
Last reviewed: June 15, 2026 • Category: Finanzen