I think you are asking what a mortgage is. When a house is $35 thousand, most people don't have that much cash. So they typically put down 20 percent of the price ($7000) and then take a loan from a bank or a lending company for the remaining $28,000. This loan is called a mortgage when it involves houses. A mortgage is usually a long-term loan, typically 30 years, which keeps the payments lower. It is always better to put more money down if possible, and go with a shorter time period loan if possible.
From the Zillow calculator below, a $34,900 loan with 20% down payment at 3.857% interest, 1.2% property tax, $800 a year for insurance, and no HOA dues, the estimated mortgage payment is $233 a month. Assuming it's a fixed rate mortgage, only the principal and interest remain the same ($131 a month) for the life of the mortgage. The property taxes, insurance, and HOA dues (if applicable) can go up or down from year to year, so your actual mortgage payments can change from year to year. Since your bank has a large financial interest in your home, they escrow these (taxes, insurance, and HOA) and they pay them for you.
It's an estimation of what the monthly mortgage payment might be most likely. Zillow is not very accurate, FYI.
Don't forget the cash you will need for the down payment,closing costs and lawyer's fees.
i tried looking up this question on Google but it just gave me "mortgage calculators" and stuff. I'm wondering WHAT an estimated mortgage even is. I'm just looking at some houses on Zillow and it shows up "Est. Mortgage: $XXX" For example, one house is $34,900 and the estimated mortgage is $230. Is this like the down payment or what?
Thanks!
