A mortgage is a loan specifically used to purchase real estate, typically a home. In this arrangement, the borrower receives a large number of money from a lender to buy the property. In return, the borrower agrees to repay the loan over a set period, usually with interest, until the loan is fully paid off. The property itself serves as collateral for the loan, meaning if the borrower fails to make payments as agreed, the lender has the right to take possession of the property through a process known as foreclosure.