mortgage contracts

A mortgage contract is a legal agreement between a borrower and a lender, typically a bank, where the borrower receives funds to buy a home. The home serves as collateral, meaning the lender can take possession if the borrower fails to repay. The borrower agrees to repay the loan amount, plus interest, usually over 15 to 30 years. Key components include the loan amount, interest rate, repayment schedule, and any fees. Understanding the terms is crucial, as they can affect monthly payments and the total cost of the home over time.