Curious how people navigate this mysterious world.
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A mortgage is just a fancy loan.
Let’s say you want to want to buy a house for $400,000. You don’t have that much money. So you meet up with a representative of your bank, and arrange a mortgage. In this case, it would be typical for you to pay the bank something like $20,000 up-front, and then $500,000 in little slices over the next 25 years. As for the person selling the house, the bank pays them $400,000 up-front.
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