Half of America has no idea what a mortgage actually is

Half of America has no idea what a mortgage actually is, new research suggests.

That’s according to a recent survey that asked 2,000 Americans, 73% of them homeowners, to test their knowledge of both the housing market and financial lending industry.

Only 49% chose the correct definition of “mortgage” from a list of options, although homeowners got it right at a higher rate (54%) than renters (40%).

And almost one in five (18%) admitted they weren’t sure what kind of minimum down payment is needed to purchase a home.