Mortgages are a type of loan that is secured by real estate or property. They are typically used to purchase a home or other piece of real estate, with the property serving as collateral for the loan.

Mortgages usually involve a long-term repayment plan, often spanning several decades, and the interest rate can be either fixed or adjustable. The borrower makes monthly payments to the lender, which typically include both principal and interest.

If the borrower fails to make the required payments, the lender may foreclose on the property and sell it to recover their investment.