A mortgage loan is a type of loan specifically used to purchase real estate, such as a house or an apartment. In this arrangement, the borrower receives funds from a lender, typically a bank or a credit union, to buy the property. The borrower then agrees to repay the loan amount, plus interest, over a set period, usually 15 to 30 years. The property itself serves as collateral for the loan, meaning if the borrower fails to make payments, the lender can take possession of the property through a process called foreclosure. Mortgage loans often require a down payment, which is a percentage of the property's purchase price paid upfront.