Mortgage

A mortgage is a loan taken out to purchase a home. It is typically secured by the property being purchased, meaning that if the borrower defaults on their payments, the lender can repossess the home. Mortgages usually have fixed interest rates and repayment periods of up to 30 years. The borrower makes regular payments over this period to cover both the principal (the amount borrowed) and interest (the cost of borrowing). In addition, most mortgages require an initial down payment, which is usually 20% of the purchase price.