A mortgage lets buyers finance a home, land, or other Real Estate over time, with the property serving as collateral for the loan.
Borrowers repay principal and interest through regular payments, often on fully amortized 15- or 30-yr loans, though some terms run shorter or much longer.
Getting approved usually requires an application, credit review, income and asset checks, underwriting, then closing, where buyers make a down payment and sign final documents.
Fixed-rate mortgages keep the same rate and payment. ARMs start with a fixed rate, then adjust later, sometimes making long-run costs less predictable.
Other options include government-backed loans for eligible borrowers, reverse mortgages for homeowners 62+, and discount points that lower rates in exchange for upfront fees.