Buying real estate usually requires borrowed money. A mortgage is a long-term loan secured by real property, giving the lender a lien that can be enforced through foreclosure if the borrower defaults.

The borrower signs a promissory note evidencing the debt and a mortgage or deed of trust creating the security interest. Monthly payments typically cover interest and principal amortization. Failure to pay taxes or insurance can also constitute default under standard forms.

Mortgage markets support widespread home ownership and commercial development. Terms such as interest rate, amortization period, and prepayment rules are heavily negotiated or standardized by secondary-market investors. Recording the mortgage protects the lender’s priority against later claimants.

• Loan secured by real property
• Enforceable through foreclosure on default
• Documented by note and security instrument
• Priority protected by recording