A mortgage is a loan secured by real property, like a house or land, used to purchase that property. The borrower (mortgagor) receives funds upfront and agrees to make regular payments to the lender (mortgagee) over a specified period, typically 15 to 30 years. These payments include both principal (the initial loan amount) and interest (the lender's fee for providing the loan). If the borrower fails to make payments, the lender has the right to foreclose on the property and sell it to recover the outstanding debt. Mortgages are a common way for individuals and families to finance homeownership, as they allow people to spread the cost of a large purchase over time.
