Real Estate Term
Mortgage
A loan used to purchase real estate, with the property serving as collateral.
What is Mortgage?
A mortgage is a loan used to buy real estate, where the property itself serves as security for the debt until it is repaid. You repay it over an amortization period through regular payments of principal and interest, at a rate that can be fixed or variable, and the loan is set within terms that you renew over time. If payments stop, the lender can ultimately take the property through foreclosure.
Frequently asked questions
Related terms
Mortgage BrokerA professional who arranges mortgages between borrowers and lenders.Fixed-Rate MortgageA mortgage with an interest rate that remains constant throughout the term.AmortizationThe process of paying off a loan over time through regular payments that cover both principal and interest.Down PaymentThe portion of the purchase price paid upfront by the buyer, typically expressed as a percentage.Interest RateThe percentage charged by a lender for borrowing money, typically expressed as an annual rate.
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