A mortgage represents a loan or lien on a property/house that has to be paid over a specified period of time. Think of it as your personal guarantee that you'll repay the money you've borrowed to buy your home. Mortgages come in many different shapes and sizes, each with its own advantages and disadvantages. Make sure you select the mortgage that is right for you, your future plans, and your financial picture.

A mortgage is the transfer of an interest in property to a lender as a security for a debt - usually a loan of money. While a mortgage in itself is not a debt, it is the lender's security for a debt. It is a transfer of an interest in land from the owner to the mortgage lender, on the condition that this interest will be returned to the owner when the terms of the mortgage have been satisfied or performed. In other words, the mortgage is a security for the loan that the lender makes to the borrower.This comes from the Old French "dead pledge," apparently meaning that the pledge ends either when the obligation is fulfilled or the property is taken through foreclosure.
In most jurisdictions mortgages are strongly associated with loans secured on real estate rather than on other property and in some jurisdictions only land may be mortgaged. A mortgage is the standard method by which individuals and businesses can purchase real estate without the need to pay the full value immediately from their own resources. See mortgage loan for residential mortgage lending, and commercial mortgage for lending against commercial property.

Mortgages are specific agreements created between a lender and borrower of capital for the purpose of purchasing a home. Home mortgages are designed specifically to provide security for the lender of the finances while providing the borrower with enough capital to purchase a property. The mortgage empowers the lender with certain rights to the property. These permit the foreclosure and sale of the property, in the event that the borrower doesn’t or cannot make the required payments to the lender as stipulated in the mortgage contract. In this case the lender has the right to sell the property and recoup losses incurred on the loan.

Payment on mortgages is agreed upon in the terms of the mortgage contract. In most cases the mortgages require a fifteen or thirty year fixed rate period. The fixed rate period refers to the length of time the lender the borrower to pay back the full amount of the mortgage including the additional interest charged. By this definition, thirty year mortgages spread the payments across a time span of thirty years. Alternatively, fifteen year mortgages spread the loan across fifteen years. The fixed rate refers to the additional interest accrued by the mortgage. This rate does not always have to be fixed. Fixed rates are often recommended to avoid paying extra on market fluctuations.

A mortgage is "the pledging of property to a creditor as security for the payment of a debt." In plain terms, it is the legal contract that says if you don't pay the loan back then the lender can have your house. In states following the "title theory," the lender holds the title to your house until the debt is completely paid off, and the lender will sell your house in order to get the money back if you can't make your mortgage payments. In states following the "lien theory," the mortagee holds a lien on your property and can foreclose said lien and sell your property in the event you default under the mortgage. Your down payment is the lump sum you pay up front that reduces the amount of money you have to finance. You can put as much money down as you want, or you can sometimes pay as little as 3 to 5 percent of the purchase price. The more money you put down, though, the less you have to finance and the lower your monthly payment will be.