What is a Mortgage?

A mortgage is a loan that is used to finance real estate where the property is used as collateral by the borrower. The easiest way to put it is that you are using your home as collateral to borrower money from the lender. There are many types of mortgages, from purchases, to cash outs, to adjustable rate mortgages. Mortgages are important, especially in our economic climate where very few people will have the liquid funds necessary to purchase a home outright. Such a loan makes home ownership a possibility instead of just a dream.