: Borrowers repay the loan over a set term (typically 15 to 30 years) through monthly installments.
: Payments are structured so the loan is fully paid off by the end of the term; early payments are mostly interest, while later payments focus on the principal. for mortgages
A mortgage is a used to purchase or maintain real estate, such as a home or plot of land, where the property itself serves as collateral . If a borrower fails to repay the loan, the lender has the legal right to seize the property through a process called foreclosure to recover their funds. How Mortgages Work : Borrowers repay the loan over a set