A buyer borrows money to purchase a home and gives the lender a security interest in the property. That loan arrangement is a mortgage. In some states the security instrument is called a deed of trust, yet the common term remains mortgage.

The borrower signs a promissory note evidencing the debt and a mortgage document that allows the lender to foreclose if payments are not made. Terms include interest rate, amortization period, prepayment rules, and escrow requirements for taxes and insurance.

Mortgages can be fixed-rate or adjustable, conforming or jumbo, government-backed or conventional. The mortgage lien remains until the loan is paid off or released. For most households the mortgage is the largest financial obligation they will ever carry.

• Loan secured by real property
• Includes a note and a security instrument
• Allows foreclosure upon default
• Available in many program variations