Mortgage finance refers to the process of borrowing money to purchase a home or property. It involves a lender providing funds to a borrower, who agrees to repay the loan over a specified period, typically with interest. The property itself usually serves as collateral, meaning if the borrower fails to make payments, the lender can take possession of the property. In mortgage finance, various types of loans are available, including fixed-rate and adjustable-rate mortgages. Borrowers must meet certain criteria, such as creditworthiness and income levels, to qualify for a mortgage. Understanding these options helps individuals make informed decisions when buying a home.