Glossary

Mortgage

Mortgage

A mortgage is a secured loan used to finance the purchase of real estate, where the property itself serves as collateral. If the borrower fails to meet repayment terms, the lender can initiate foreclosure proceedings to repossess and sell the property to recoup the outstanding balance.

Mortgages enable individuals and businesses to buy homes or commercial property without paying the full purchase price upfront. Typically, a lender finances a large portion of the property’s value—often up to 80%—and the borrower repays the principal plus interest over a set term, commonly 15 to 30 years. Loan size, interest rates, repayment schedules and eligibility criteria vary by lender, borrower profile and property type.

Real-World Applications of Mortgages

Key Considerations

Mortgages are fundamental financial tools that spread the substantial cost of real estate purchases over many years, making homeownership and property investment accessible to a wide range of borrowers.

Michael McCleskey