A mortgage is a type of loan used to purchase real estate, most commonly a home.

It is a secured loan, meaning the property itself serves as collateral. If the borrower fails to make payments as agreed, the lender (usually a bank or financial institution) has the legal right to foreclose on the property and sell it to recover the outstanding debt.

Mortgages typically involve regular monthly payments that cover both principal and interest, and they may also include property taxes and insurance.

The terms of a mortgage, such as interest rate, repayment period, and down payment requirements, vary based on the lender and the borrower’s financial profile.