Mortgages

A mortgage is a type of loan specifically designed for purchasing real estate, typically a home or property. It enables individuals to acquire property by borrowing money from a lender, usually a bank or mortgage company, with the property itself serving as collateral for the loan. Mortgages come with an agreed-upon interest rate and repayment terms, often spanning several years. The borrower makes monthly payments to the lender, which include both principal (the amount borrowed) and interest (the cost of borrowing the money). Over time, as the borrower makes payments, the loan balance decreases, and the borrower builds equity in the property. If the borrower fails to make payments as agreed, the lender may have the right to foreclose on the property and sell it to recover their investment. Mortgages are essential financial tools that enable individuals to achieve homeownership while spreading the cost of a property over an extended period.