Mortgage Loan Overview
What Is a Mortgage?
A mortgage is a type of loan intended to finance the purchase of a property, such as a home. It may also be used to refinance an existing home loan.
The property involved serves as the collateral to secure the loan. If the borrower defaults or fails to fulfill payments, the lender can foreclose and take ownership of the property.
The debt acquired through a mortgage is lowered through monthly payments in a process known as amortization. These payments cover both the principal amount borrowed and the interest rate imposed by the lenders.
Once the mortgage has been fully paid off, the borrower retains full rights and ownership of the property.
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True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.