Mortgage

A mortgage is a loan that you can use to buy a house. Most people need to borrow money from a bank, credit union, or another lender in order to buy a home. The lender loans the money and in exchange you must pay it back over time, with interest added on. You also must make regular payments called a mortgage payment that includes both the part of the loan you borrowed, plus the interest. The payments are generally due each month for a certain number of years (for example, 30 years). This loan is called a 'mortgage' because the lender is taking a risk that you will pay back the loan. If you don't pay, the lender can take your home.