A mortgage is a type of loan used to purchase property.
What is a mortgage?
A mortgage is a loan used to purchase property. Mortgages may have varying interest rates depending on the terms and credit of the borrower. Since interest accrues based on the remaining balance of the loan, a longer mortgage term will have the borrower pay a greater total amount back to the lender.
A key difference between other loans and mortgages is that if the borrower fails to pay the mortgage regularly, the lender has the legal authority to take the property.