October 18, 2011 - Word of the Day: mortgage

Most people in the United States take out a mortgage when they buy a house. This is a special loan for a house or a condominium (or an place where a person might live). The most common type of mortgage takes 30 years to pay back, but some people choose 15-year loans. The word "mortgage" is usually a noun:

• Fred got a good interest rate on a mortgage for his house.
• We have a 15-year mortgage on our house.
• Cathy got her mortgage through a broker.*
• John and Jill finally paid off their mortgage. Now they own their house free and clear.
• It's not that hard to get a mortgage for a house. If you have a job, good credit, and a little money saved, you can probably get a mortgage.

I always tell my students (the ones who I see every day in class) that if they're going to stay in the United States, they should think about getting a house. That almost always means they need a mortgage to buy the house. The reason I recommend this is because it's much better to have a house that you own when you get older than not to have one. If you rent an apartment or a house, the money you pay in rent goes to someone else. If you own a house, you can sell it in the future and keep the money for yourself. Interest rates are very low right now. This makes home ownership more possible for many people. This is a big part of living the American dream.

Word of the Day for October 17, 2011: debt

Word of the Day: August 2011

Word of the Day: July 2011