Home Loan

A home loan, also known as a mortgage, is a financial product designed to help individuals or families purchase a home. The borrower typically repays the loan in monthly installments over a set period (usually 15, 20, or 30 years). The home purchased acts as collateral for the loan, meaning the lender can seize the property if the borrower defaults on the loan. Home loans come in various types, such as fixed-rate mortgages, where the interest rate stays the same throughout the term, and adjustable-rate mortgages (ARMs), where the interest rate may change periodically based on market conditions. The terms of a home loan—interest rates, monthly payments, and repayment duration—are influenced by factors like the borrower’s credit score, income, and the size of the down payment.