Mortgage Financing

Mortgage financing is a way to borrow money to buy a home. When you take out a mortgage, you receive a loan from a bank or lender, which you agree to repay over time, typically 15 to 30 years. You make monthly payments that cover both the principal (the amount borrowed) and interest (the cost of borrowing). The home itself serves as collateral; if you fail to repay, the lender can take possession of the property. Mortgages usually require a down payment, which is a percentage of the home's price, and come with varying terms and conditions.