A mortgage is a loan used to purchase a property, where the property itself serves as collateral for the loan. The borrower agrees to repay the loan amount plus interest over a specified period, typically 15 to 30 years. Monthly payments generally include both principal and interest, and sometimes property taxes and insurance. Mortgages allow individuals to buy a home without paying the full purchase price upfront.

When you take out a mortgage, you borrow money from a lender to buy a home. You agree to repay the loan in regular monthly installments over the loan term, which typically ranges from 15 to 30 years. Each payment you make includes a portion that goes toward the loan principal and another portion that covers interest. The goal is to fully repay the loan by the end of the term.

A down payment is an upfront payment made when buying a home. It is a percentage of the home's purchase price, and it reduces the total amount you need to borrow. The size of the down payment can vary, but it is typically between 3% and 20% of the home's price. A larger down payment can help you secure a better mortgage rate and reduce your monthly payments.