Mortgage

A mortgage is a loan used to buy a home or other real estate. In simple terms, a mortgage lets someone buy property now and pay for it over time. Mortgages are important because most people cannot pay the full price of a home in cash. A mortgage allows them to borrow money from a lender and repay it through regular payments, usually with interest. For example, if a person buys a $400,000 home and borrows $320,000 from a bank, that borrowed money is a mortgage. A mortgage is not the same as rent. Rent is money paid to live in a property owned by someone else, while a mortgage is a loan used to buy property.