A mortgage is a type of loan specifically used to purchase real estate, where the property itself serves as collateral for the loan. Mortgages allow individuals to buy homes without needing to pay the full purchase price upfront, and they are typically repaid over a set period of time, with interest. The terms of a mortgage can vary widely based on interest rates, loan duration, and the borrower's creditworthiness, impacting overall affordability and financial planning.
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