What Is a Mortgage? Payments, Types and Terminology

Some or all of the mortgage lenders featured on our site are advertising partners of NerdWallet, but this does not influence our evaluations, lender star ratings or the order in which lenders are listed on the page. Our opinions are our own. Here is a list of our partners.
What is a mortgage?
A mortgage is a loan used to buy a home. You repay the loan, with interest, over a set number of years. The property serves as collateral, meaning if you don't pay, the lender can take the home. Though you are a homeowner while paying the mortgage, it's only once the mortgage is paid off that you own the home "free and clear."
"Mortgage" can also refer to the legal document outlining the loan terms and permitting your lender to seize the home if you don't repay the loan as agreed. In some states, this document is called a deed of trust.
» MORE: How to buy a house
Mortgage loans from our partners

on New American Funding
on New American Funding

on GO Mortgage
GO Mortgage
4.0
NerdWallet rating
4.0
NerdWallet ratingon GO Mortgage
Mortgage loans from our partners

on New American Funding
on New American Funding

on GO Mortgage
GO Mortgage
4.0
NerdWallet rating
4.0
NerdWallet ratingon GO Mortgage

on Rocket Mortgage