Mortgage

A mortgage is just a loan that’s secured by real estate – a property is signed over to the bank as collateral. If you have a mortgage on your home but you fail to make your payments, the bank can take ownership of your home (and sell it to recoup the money that it loaned you). Since many people use a mortgage to buy a home, mortgage rates (i.e. interest rates on mortgages) have an impact on property prices.

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