What is a mortgage loan?


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YP Answers

A mortgage is a loan used to buy real estate in which the asset (the house you are buying) is also the collateral. The loan is paid back over time (such as a 30-year mortgage) and with each payment, the borrower accrues incremental ownership of the property called equity. If the borrower defaults on the loan, the lender assumes ownership of the property. In some cases borrowers will walk away from a mortgage when the loan exceeds the value of the house.  During the mortgage crash, hundreds of thousands of people walked away from mortgages when the market crashed and housing values plummeted....Read More

Joliet42 B.

A loan for a mortage!

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I have a mortgage loan with my bank. I made a down payment on my home. I think it was around 10% of the total, and now I make monthly payments until the original amount and the interest are paid back. The bank uses my house as collateral until I pay everything off.

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Stanley P.

A mortgage loan is money lent in order to buy property. For example, I took out a mortgage in order to buy my home. ...Read More