What You Should Know About Mortgages

A mortgage is a large loan secured by real estate, property, or the house itself. The borrower (mortgagor) promises the lender (mortgagee) to pay back the loan based on certain terms and conditions. These payments are typically made in installments (monthly, bi-weekly, or weekly) which allow the agreed upon payment amount to pay the interest and cover a portion of the principal.

The mortgage is based on an amortization period that indicates the length of time it will take to repay the loan in full.