Mortgage

A mortgage is the asset used as collateral or security on a home loan, which is usually all or part of the value of the property being purchased. Mortgage can also refer to the loan itself, or the contract on the loan. Like other loans, mortgages are paid in small periodic payments over a given period, with interest charged every month. Mortgage loans are usually long-term; the most common plans last 15 to 30 years. Interest rates can be fixed, adjustable, or a combination of both, although fixed rate loans are far more popular.