Mortgage

A mortgage is a type of loan specifically used to buy real estate, such as a home. When you take out a mortgage, a lender (usually a bank) lends you money to purchase the property, and in return, you agree to pay back that amount over a set period, typically 15 to 30 years, with interest. The property serves as collateral, meaning if you fail to make payments, the lender can take possession of it through a process called foreclosure. Mortgages allow individuals to buy homes without paying the full price upfront.