A home mortgage is a loan specifically used to purchase a house. When you take out a mortgage, a lender provides you with the funds needed to buy the property, and you agree to pay back the loan over a set period, usually 15 to 30 years. The house itself serves as collateral, meaning if you fail to make payments, the lender can take possession of the property through a process called foreclosure. Mortgages typically come with interest rates, which can be fixed or variable. A fixed-rate mortgage has the same interest rate throughout the loan term, while a variable-rate mortgage may change over time. Borrowers usually need to provide a down payment, which is a percentage of the home's purchase price, and they may also need to pay additional costs like property taxes and insurance.