A mortgage is a debt instrument, secured by the collateral of specified real estate property, that the borrower is obliged to pay back with a predetermined set of payments. Mortgages are used by individuals and businesses to make large real estate purchases without paying the entire purchase price up front. A mortgage is an agreement that allows a borrower to use property as collateral to secure a loan. In most cases, the term refers to a va home loan : When you borrow to buy a house, you sign an agreement saying that your lender has the right to take action if you don’t make your required payments on the loan. Most importantly, the bank can take the property in foreclosure — forcing you to move out so they can sell the home. The sales proceeds will be used to pay off any debt you still owe on the property. A Mortgage Is an Agreement:- The terms “mortgage” and "home loan" are often used interchangeably. Technically, a mortgage is the agreement that makes your home loan po...