What is Mortgage?

Transcript

00:00

A mortgage is a loan taken out to buy a property.

00:04

It’s a big financial commitment.

00:07

You borrow money from a lender, like a bank, and use the property as collateral.

00:12

The property serves as security for the loan.

00:16

You pay back the loan in monthly installments over a fixed period, like 15 to 30 years.

00:22

The lender charges you interest on the loan.

00:26

Interest rates can vary based on market conditions and your creditworthiness.

00:31

If you fail to repay the loan, the lender has the right to take possession of the property and sell it to recover their money.

00:38

A mortgage allows you to become a homeowner without paying the full cost upfront.

00:43

It’s important to understand the terms and conditions of your mortgage before signing any agreements.