Mortgage
A loan used to purchase real estate, secured by the property itself as collateral.
Common types: 30-year fixed (most popular — predictable payments for the life of the loan), 15-year fixed (higher payments but less total interest), and adjustable-rate (ARM — lower initial rate that adjusts periodically). Monthly payments include principal, interest, property tax, and homeowner insurance (PITI). The interest portion is largest in early years and shrinks over time as more of each payment goes to principal.
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