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- [Voiceover] What I want to do in this video is explain what a mortgage is. I think most of us have at least a general sense of it, but even better than that, actually go into the numbers and understand a little bit of what you are actually doing when youre paying a mortgage, what its made up of and how much of it is interest versus how much of it is actually paying down the loan. Lets just start with a little example. Lets say that there is a house that I like. Lets say that that is the house that I would like to purchase. It has a price tag of, lets say that I need to pay $500,000 to buy that house. This is the seller of the house right here. And they have a mustache. Thats the seller of the house. I would like to buy it. I would like to buy the house. This is me right here. And Ive been able to save up $125,000 dollars. Ive been able to save up $125,000 but I would really like to live in that house so I go to a bank. I go to a bank, let me get a good color for a bank. That