Mortgage Loan

What Is a Mortgage Loan?

A mortgage is a secured loan provided by a lender to help a borrower acquire or refinance real estate. The loan is backed by the property, which serves as collateral—if the borrower defaults, the lender has the right to seize the property.

Benefits

• Enables Homeownership: Spread the cost of property over decades, making it more affordable.
  
  

• Lower Interest Rates: Due to collateral, mortgages typically offer better rates than unsecured loans.
  
  

• Builds Equity: Regular payments increase home equity, which can be borrowed against via home equity loans or HELOCs.
  Potential Tax Advantages: Mortgage interest may be tax-deductible, depending on jurisdiction.