A mortgage is a financial loan that enables individuals to purchase real estate by borrowing funds from a lender, often a bank. The borrower agrees to repay the loan over a specified period, making regular payments that include both principal and interest.
The property itself serves as collateral, and failure to repay can lead to foreclosure, where the lender takes possession of the property.
Mortgages are common for home purchases, providing individuals with a means to own property while spreading the cost over time.
