Confused on how a loan works?

[Fahadbin Alam]

So I'm confused on how a Loan works. Because I see some people buying 350,000 dollar duplex and I'm like wow how did they do that. They told me they only put 5% down and I'm confused does that mean the seller with the banks money and put about 5% of their own or did they just give 5% and will later give the rest?

[Theresa Harris]

They get a mortgage.  The other 95% of the money comes from the bank or a lender and they repay them that money over 25 years with interest.