A home loan, also known as a mortgage, is a type of loan specifically used to purchase a house. Borrowers receive a lump sum of money from a lender, which they agree to pay back over time, usually in monthly installments. The home itself serves as collateral, meaning if the borrower fails to repay, the lender can take possession of the property. Home loans come in various types, including fixed-rate and adjustable-rate mortgages. A fixed-rate mortgage has a constant interest rate throughout the loan term, while an adjustable-rate mortgage may change after an initial period. Borrowers should consider their financial situation and long-term plans when choosing a home loan.