A mortgage is a type of loan used to finance the purchase of a property, typically real estate. It is a legal agreement between the borrower and the lender. In a mortgage, the borrower receives funds to buy the property, and the property itself serves as collateral for the loan. The borrower agrees to repay the loan amount plus interest over a specified period, typically through regular monthly payments. If the borrower fails to make the required payments, the lender may have the right to foreclose on the property and sell it to recover the outstanding debt. Mortgages are an essential tool for individuals and businesses to achieve homeownership or acquire investment properties while spreading the cost over an extended period.
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