What Is a Mortgage?
A mortgage is a loan that helps you buy a home. Instead of paying the full price upfront, most people borrow money from a lender and pay it back over time.
How a Mortgage Works
Here’s the simple version:
You borrow money to buy a home
You agree to pay it back over a set number of years
You pay a little each month until the loan is paid off
The home itself is used as security for the loan. That means if payments stop, the lender can take the home back.
What You Pay Each Month
A mortgage payment is usually made up of a few parts:
Loan payment – paying back the money you borrowed
Interest – the cost of borrowing the money
Property taxes – often collected monthly and paid on your behalf
Home insurance – protects the home in case of damage
Not every mortgage includes all of these, but most do.
How Long Mortgages Last
Mortgages are long-term loans. Common lengths include:
15 years
20 years
30 years
Longer loans usually mean lower monthly payments, but more interest paid over time.
Why Mortgages Matter
Mortgages make homeownership possible for most people.
They allow you to:
Buy a home sooner instead of waiting years to save
Spread the cost over time
Build equity as you pay down the loan
What This Page Covers and What It Doesn’t
This page explains what a mortgage is at a high level.
If you want to go deeper, you can explore:
Mortgage Basics – how loans work in more detail
Types of Mortgages – FHA, conventional, VA, and more
Pre-Approval – what lenders look at before approving you
What’s Next?
If you’re new to homebuying, learning how mortgages work is a great first step.
From here, many buyers move on to:
Understanding loan options
Checking their budget and credit
Exploring pre-approval
You can explore those topics in our Learn Hub when you’re ready.