A mortgage is a type of loan used to finance the purchase of real estate, such as a home, land, or commercial property. In a mortgage agreement, the borrower (often referred to as the mortgagor) pledges the property as collateral for the loan, which means that if the borrower fails to repay the loan according to the agreed terms, the lender (known as the mortgagee) has the right to foreclose on the property and sell it to recover the outstanding debt.

Key components of a mortgage include:

1. Loan Amount: The amount of money borrowed by the borrower to purchase the property.

2. Interest Rate: The rate at which interest is charged on the loan amount. This can be fixed or variable depending on the terms of the mortgage.

3. Repayment Terms: The schedule and method of repaying the loan, which typically includes monthly payments over a set period of time (the loan term).

4.Collateral: The property being purchased with the loan serves as collateral for the mortgage, providing security for the lender in case of default by the borrower.

5. Foreclosure: The legal process by which the lender repossesses the property and sells it to recover the outstanding debt if the borrower defaults on the mortgage payments.

Mortgages are commonly used by individuals and families to finance the purchase of homes, but they are also utilized by businesses and investors to acquire commercial properties or investment real estate. The terms and conditions of a mortgage, including the interest rate, repayment schedule, and loan amount, can vary depending on factors such as the borrower's creditworthiness, the type of property being financed, and prevailing market conditions.