What is a mortgage?

@coty.bode 

A mortgage is a type of loan that is taken out to finance the purchase of a property, usually a house. It is secured by the property itself, which means that if the borrower fails to repay the loan, the lender has the right to take ownership of the property and sell it to recover the amount owed. Mortgages are typically repaid over a long period of time, often 15 to 30 years, and include both principal (the amount borrowed) and interest (the cost of borrowing). The terms and conditions of a mortgage, such as interest rate, repayment schedule, and down payment requirements, may vary depending on the lender and the borrower's creditworthiness.

@coty.bode 

A mortgage allows individuals or families to become homeowners without having to pay the full price of the property upfront. Instead, they make regular mortgage payments over the term of the loan until it is fully paid off. Mortgages can be obtained from banks, credit unions, or other financial institutions, and the interest rates can be fixed or adjustable.

There are different types of mortgages available, including conventional mortgages, which are not insured by the government, and government-backed mortgages, such as FHA (Federal Housing Administration) or VA (Veterans Affairs) loans, which are guaranteed by the government. The amount that can be borrowed through a mortgage is typically determined by factors such as the borrower's income, credit history, and the appraised value of the property.

Overall, a mortgage is a financial tool that allows individuals to purchase property by borrowing money and paying it back over time, with the property serving as collateral for the loan.