What is a mortgage and how does it work?

A mortgage is a loan used to buy real estate, secured by the property. You repay it in fixed monthly payments over a term (commonly 15–30 years) that include principal and interest, and sometimes escrow for taxes and insurance.

How do auto loans work and what affects my rate?

An auto loan finances a vehicle and is repaid in monthly installments. Rates depend on credit score, down payment, loan amount vs. vehicle price, term length, and lender policies; longer terms usually cost more interest.

What is a student loan and what are federal repayment options?

A student loan helps cover education costs. Federal loans offer repayment options such as standard 10-year plans and income-driven plans, plus deferment or forbearance; subsidized loans may have government-paid interest during school, while unsubsidized loans accrue interest.

What does amortization mean and how can extra payments help?

Amortization is paying off a loan with regular principal and interest. Making extra payments reduces the principal faster, which can lower total interest and shorten the loan term (check for any prepayment penalties with your lender).

What should I compare when shopping for loans?

Compare APR, total cost over the term, monthly payment, fees, and loan terms. Consider down payment, loan-to-value, and eligibility for subsidies or discounts.