Introduction to Mortgage Loans | Housing | Finance & Capital Markets | Khan Academy

Introduction to mortgage loans. Created by Sal Khan.

Watch the next lesson:

Missed the previous lesson? Watch here:

Finance and capital markets on Khan Academy: Most people buying a home need a mortgage to do so. This tutorial explains what a mortgage is and then actually does some math to figure out what your payments are (the last video is quite mathy so consider it optional).

About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We’ve also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content.

For free. For everyone. Forever. #YouCanLearnAnything

Subscribe to Khan Academy’s Finance and Capital Markets channel:
Subscribe to Khan Academy:

43 Replies to “Introduction to Mortgage Loans | Housing | Finance & Capital Markets | Khan Academy”

  1. What you unfortunately fail to mention here is that the money you lend is created out of thin air when it is credited to you.
    The original French translation of mortgage 'dead pledge' needs to understood literally, it is a pledge to pay back a principal amount that gets created out of nothing being money that is backed by nothing tangible, plus interest to private financial institutions until you are dead. 

  2. Ok so I'm pretty young and want to be smart about my money when I get older and want to know if this is a likely situation. Sorry if he answers in the video but I needed to ask it just invade I forgot. So what happens if the bank that you pay your mortgage to, goes bankrupt? Like I said, I don't know if that's possible but I'm just wondering.

  3. Amazing video on the basics of mortgages. I'd like you to more of these since the banks clearly don't want you to know how this works. Also, that tax thing sucks didn't realize the government takes away so much. Our millennial generation needs to be taught this because of 2008 as seems like it is going to happen here in Canada if out notion is to buy without thought.

  4. This video is extremely helpful. As a freshman in college, i know a lot less than i should about living in the real world than i should. This video is very clear, and a lot makes sense to me now. It would be very nice if you could continue to put out some of these "general knowledge in the real world" videos for us who dont know anything about it, such as myself. Thanks again for the great vid!

  5. The origin of mortgage means until your death, you have this pledge. Like you said, the bank has security should anything happen to you.

    Question: does the details of the mortgage the same globally(I'm in the UK)?

  6. Are there transcripts or actual captions for your videos? The Google automatic captioning does not work very well (give it a try, turn the sound off and see how much sense it makes). Deaf people are missing out on this resource. Thanks.

  7. Thank you Khan! THIS right here is one of real world essentials EVERY kid should be taught… I've always believed that this stuff should be required teaching in high school.

  8. This will be more than helpful for future, long term investments. Thanks for sharing this information! It's as if taking your time and diligently working hard will reward you greater over time.

  9. The sin debt needs to be paid.  Other spiritual traditions call it karma.  We think that we pay for our ill doings, but we are only paying the INTEREST (the fake bill).  God pays the principle and interest.    Sin literally works like a massive loan where you become a slave to accruing interest never touching principle amount.  We live in a sin based world much like we live in a debt based economy.  If you run out of debt the market would crash based on our current model.  Same goes for worldly progress, it runs on sin.  If there was no sin, then the world system crashes.  Jesus overcame that system and crashed that market of sin in the spiritual sense.  He has a new model, a new life, new wealth, and  a new freedom.

    Jesus crashed the market with his payment.  Why? The payment was to be a PERFECT  SINLESS SACRIFICE/PAYMENT. None of us could pay that bill.  Jesus had the profile and the currency, sinless divine blood.    We benefit from that payment.   That is why if you want to pay your own sin debt, you will pay forever in hell because it took an infinite God paid and infinite price.  Christ bares his wounds for all eternity.  You will be in debt bondage for eternity paying interest because sinful flesh and blood is not good enough to pay principle.  Just like you can not pay a credit card debt with another credit card, you can not pay sin debt with sin spotted sincerity.  Accept the payment of the master or pay with our own charred body in hell.  Why burn forever feeding into an endless usury?

    Galatians 5:1
    Stand fast therefore in the liberty wherewith Christ hath made us free, and be not entangled again with the yoke of bondage.

  10. can someone help me get a mortgage loan for a single wide mobile home. my bank jus told me they dont do single wide but double wide on a permanent foundation. bullshit i dont need a double wide which cost more

Leave a Reply