A mortgage is a loan that is used to purchase a property, such as a house or an apartment. When you take out a mortgage, you borrow a specific amount of money from a lender, such as a bank or other financial institution, And agree to repay the loan within a fixed period ie 15 to 30 years.
The mortgage is secured by the property that you are purchasing, which means that if you are unable to repay the loan, the lender has the right to foreclose on the property and sell it to recoup the remaining balance of the loan.
When you apply for a mortgage, the lender will consider a variety of factors, including your income, credit score, debt-to-income ratio, and the value of the property you are purchasing, to determine whether you are eligible for the loan and what interest rate you will be offered.
Once you are approved for a mortgage, you will make regular payments, typically on a monthly basis, to repay the loan over the agreed-upon period of time. The amount of your monthly payment will depend on the size of the loan, the interest rate, and the length of the loan term.