residential mortgage

A residential mortgage is a loan used to purchase a home or property. The borrower agrees to repay the lender over time, typically through monthly payments that cover the loan amount (principal) and interest. The home serves as collateral, meaning if the borrower fails to make payments, the lender can take ownership of the property through a legal process called foreclosure. Mortgages usually involve a set interest rate and a fixed or adjustable repayment schedule, allowing individuals to finance their homebuying with manageable payments rather than paying the full price upfront.