Explain · Like I'm five version
Mortgages in terms of Monopoly
A mortgage is just like playing Monopoly but you have to keep paying the bank for forty years instead of just passing go.
When you buy a house with a mortgage, the bank lends you a big pile of money to pay the seller. You become the owner of the house, but you must pay the bank back bit by bit every month. It is just like landing on Mayfair, but instead of finishing the game in an hour, you stay on that square until you retire. You also have to pay a little bit extra to the bank each time, which is like a fee for the privilege of staying on the board.
The bank keeps the deeds to your house as a promise that you will pay them back. If you stop sending your money, the bank can take the house away, much like when you run out of cash and have to give your hotels to your brother. It is a very serious game where you cannot just flip the board over when you are losing. You have to keep playing even when you would rather be doing something fun, like playing with Lego or having a nap.
If you pay your mortgage on time for many years, the bank eventually says you have finished the game. The house becomes truly yours, and you no longer have to send any more money to the bank. You are finally off the Monopoly board, and you can enjoy your house without worrying about the banker. It is a long game, but at least you get a real roof over your head.
Where the analogy breaks downIn Monopoly you can win the whole game by taking all the money, but with a mortgage, the bank just wants its money back with interest and does not care if you own everything else.