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Understanding Mortgages and Home Equity

  • Description
  • Outcome
  • Certification
  • Taking out a mortgage for a house or property is the biggest financial commitment most people make in their lives. Because of this it is of vital importance that people understand the financial concepts behind mortgages and home equity.

    In this free online course you will learn about the concepts of assets, liabilities and equity in relation to obtaining a mortgage from a financial institution to purchase a house. You will also learn how to calculate the monthly interest repayments for a mortgage.

    This course will be of great interest to all learners who are considering purchasing a house or property and who would like to learn more about the financial concepts behind mortgages and home equity.

  • Having completed this course the learner will able to:
    - Describe the meaning of assets, liabilities and equity in relation to purchasing a house;
    - Calculate monthly interest rate repayments over the life-time of a fixed-rate mortgage;
    - Calculate monthly interest payments using a geometric formula.

  • All Alison courses are free to study. To successfully complete a course you must score 80% or higher in each course assessments. Upon successful completion of a course, you can choose to make your achievement formal by purchasing an official Alison Diploma, Certificate or PDF.

    Having an official Alison document is a great way to share your success. Plus it’s:

    • Ideal for including in CVs, job applications and portfolios
    • An indication of your ability to learn and achieve high results
    • An incentive to continue to empower yourself through learning
    • A tangible way of supporting the Alison mission to empower people everywhere through education.

Understanding Mortgages and Home Equity
  • Free

  • 1-2 Hours

  • Khan Academy

  • Assessment

  • Certification

  • 50 Pts

Modules List( 2 )
  • Module
    Understanding Mortgages and Home Equity
    • Learn more about mortgages and home equity.
    • Mortgages and home equity - Learning outcomes
    • Introduction to balance sheets
    • More on balance sheets and equity
    • Home equity loans
    • Introduction to mortgage loans
    • Mortgage interest rates
    • Short sale basics
    • Geometric series sum to figure out mortgage payments
    • Lesson summary
  • Module 2: Mortgage and Home Equity Assessment
    • You must score 80% or more to pass this assessment.
    • Mortgages and Home Equity Assessment
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