Home Loans

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Home / Home Loans

Home Loans

A home loan, or mortgage, is a type of loan provided by a bank, mortgage lender, or financial institution to help individuals purchase residential property. This can include a primary home, a second home, or an investment property, as opposed to commercial or industrial real estate.

In a mortgage agreement, the borrower transfers the property’s title to the lender as security for the loan. The title is returned to the borrower once the loan is fully repaid and all terms of the mortgage are satisfied.

Key Takeaways

  • A home mortgage is a loan provided by a bank, mortgage lender, or financial institution to help finance the purchase of a residential property.
  • Mortgages typically come with either a fixed or variable (floating) interest rate and can have terms ranging from 3 to 30 years.
  • The lender holds the property title as collateral and transfers it to the borrower once the loan is fully repaid.