You may already know that a mortgage is a loan that is used to buy a home or other real estate. When someone takes out a mortgage, they borrow money from a lender, agreeing to pay it back over time with interest. The property itself acts as collateral, meaning if the borrower fails to make payments, the lender can take possession of the property. Mortgages, in most cases, have fixed or adjustable interest rates and are repaid over a set period (15 or 30 years), through regular payments per month.