What Is a Mortgage?

A mortgage is a loan that is secured by a real estate property, typically a house. A mortgage loan is used to finance the purchase of the mortgaged property itself. In other words, you can apply for a mortgage when you want to purchase a house but cannot afford the purchase price.

Home buyers will borrow money from a lender, typically a bank, to purchase the property and repay the loan with interest in installments over a predetermined period of time.