Real Estate Glossary

What is Mortgage?

A mortgage is a type of loan used to purchase a property, typically a home. The property is used as collateral for the loan, and the lender has the right to foreclose on the property if the borrower fails to make the payments. Mortgages typically have a long term, often 15-30 years, and payments are usually made on a monthly basis. The terms of the loan, including the interest rate, the length of the loan, and the size of the payments, are determined by the lender and are based on the borrower's creditworthiness and the value of the property.