Mortgage

A mortgage is a type of loan used to purchase real estate, typically a house or property. The borrower agrees to repay the loan over a set period, usually 15 to 30 years, with regular monthly payments. These payments include both principal (the original amount borrowed) and interest.

The property itself serves as collateral for the loan, meaning if the borrower fails to make payments, the lender can take possession of the property through foreclosure. Mortgages often require a down payment, which is a percentage of the property’s value paid upfront by the borrower.