A
loan used to
buy real estate where one resides. A home mortgage is
secured by the
property it is used to purchase. One must make monthly payments on a home mortgage, and there is a set term before full
payment is due, often 15, 20 or 30 years. Some mortgages have
fixed interest rates, while others have
variable interest rates. If one
defaults on a home mortgage, the
bank making it may take possession of the real estate and
sell it to recover its
investment. Some banks, notably
savings and loans, specialize in making mortgage loans. In the United States, home mortgages have more favorable tax implications than mortgages on other properties. See also:
Mortgage-backed security.