Mortgage (real estate)

A mortgage is a loan specifically for purchasing real estate, like a house. When you take out a mortgage, the lender provides the funds to buy the property, and in return, you agree to repay that amount, plus interest, over a set period, usually 15 to 30 years. The property itself serves as collateral; if you fail to make payments, the lender can take the property through foreclosure. Mortgages often include various terms, such as interest rates and monthly payment schedules, and can be fixed (unchanging) or variable (fluctuating with market rates).