home financing

Home financing is the process of obtaining money to buy a property, typically through a loan called a mortgage. Lenders, like banks, provide the funds, which the borrower agrees to pay back over time with interest. The mortgage is secured by the home itself, meaning if the borrower defaults, the lender can take ownership through a process called foreclosure. The terms of a mortgage include the loan amount, interest rate, repayment period, and monthly payments. Home financing helps individuals afford homes by spreading the purchase cost over many years, making ownership more accessible.