Finance glossary
Mortgage
Definition
A loan used to buy property, secured by the property itself.
A mortgage is a long-term loan to purchase real estate, with the property serving as collateral. Borrowers repay principal and interest over years, often 15 or 30. If payments stop, the lender can foreclose and seize the home to recover the debt.
In a sentence
They took out a 30-year mortgage, putting the house up as collateral for the loan.
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