What are mortgage loans?

Mortgage loans are a type of loan used to purchase a residence. They allow people to borrow money to purchase a home, with the house itself serving as collateral. The loan is secured by the home and repaid over time with interest. Mortgages typically require a down payment, closing costs, and other fees, and the interest rate can vary depending on the type of loan, credit history, and other factors. Homeowners also have to pay property taxes and insurance on their mortgage loan.

Written by

Ivy Silverman, Mar, 11 2023