A mortgage loan is a type of loan specifically used to purchase real estate, such as a house. In this arrangement, the borrower receives funds from a lender, typically a bank or credit union, to buy the property. The borrower agrees to repay the loan amount, plus interest, over a set period, usually 15 to 30 years. The property itself serves as collateral, meaning the lender can take possession of it if the borrower fails to make payments. Mortgage loans come in various forms, including fixed-rate mortgages and adjustable-rate mortgages. A fixed-rate mortgage has a constant interest rate throughout the loan term, while an adjustable-rate mortgage may change rates after an initial period. Borrowers must also consider additional costs, such as property taxes and homeowners insurance, which can affect their overall monthly payments.