A mortgage is a loan specifically used to purchase real estate, where the property itself serves as collateral for the loan. The borrower agrees to repay the loan over a set period, typically 15 to 30 years, with interest. If the borrower fails to make payments, the lender can take possession of the property through foreclosure. Mortgages typically involve monthly payments that cover both the principal (the loan amount) and interest, and may also include taxes and insurance. The terms and conditions of a mortgage depend on the type of loan and the lender.