A mortgage is a loan specifically designed to purchase property, typically a home. The borrower agrees to repay the lender over a set period, usually 15 to 30 years, with regular payments that include both principal and interest. The property itself serves as collateral for the loan, meaning the lender can take possession of it (foreclose) if the borrower fails to make payments. Mortgages are a crucial tool for homeownership, allowing individuals to finance a significant purchase over time, but understanding the terms and responsibilities is essential before taking one out.
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