A mortgage is a loan that you take out from a lender to buy a home. You agree to repay the loan, plus interest, over a period of time, typically 15 or 30 years. The home serves as collateral for the loan, which means that the lender can take ownership of the home if you don't make your payments.

The amount of money you can borrow for a mortgage depends on a number of factors, including your income, debt, and credit score. The interest rate on your mortgage will also depend on a number of factors, including the type of mortgage you choose, the length of the loan term, and your credit score.

There are two main types of mortgages: fixed-rate mortgages and adjustable-rate mortgages (ARMs). With a fixed-rate mortgage, your interest rate will stay the same for the entire life of the loan. With an ARM, your interest rate can change periodically, typically every year or five years.

When you're shopping for a mortgage, it's important to compare offers from different lenders. You should also make sure you understand the terms of the loan before you sign anything.

Most lenders require a down payment of at least 3% of the purchase price of the home. However, some lenders may require a higher down payment, especially if you have a low credit score.

Closing costs are the fees associated with buying a home. These fees can include things like appraisal fees, title insurance, and loan origination fees. Closing costs typically range from 2% to 5% of the purchase price of the home.

It's a good idea to get pre-approved for a mortgage before you start shopping for a home. This will give you an idea of how much money you can borrow and what your monthly payments will be.

Once you have a mortgage, you'll need to make monthly payments to the lender. These payments will include both principal and interest. The principal is the amount of money you borrowed, and the interest is the fee you pay to the lender for borrowing the money.

Over time, as you make your monthly payments, the principal balance of your loan will decrease. Once you've paid off the entire loan, you will own your home outright.