Mortgage is a loan to pay your house or property that you purchased. If you can not buy your home in cash then most of the lenders will offer mortgage to you so that you can pay the home that you bought. Since most of the developers will not give the home that you want if you do not give big down payment to them, you need to apply mortgage to borrow big money and give it to the real estate developer, in return your home will become collateral to the lender of the money.

Now you have to pay your monthly due for the new home that you have to the lender who gave you money in order to purchase the home that you have. All lenders though will require you an insurance for your purchased property before they approve your loan, this is because the home will become their collateral from you before you could finish paying your debt from them. If you can not pay the money you borrowed from them including the interest then they will take you home and sells it in order to cover the money that they lent to you.

Mortgage is when you borrowed money from lender in order for you to purchase a home. Later you have to pay your mortgage from the lender in monthly basis including tax or base on your agreement. If you can not pay, the lender will take your home because it is the collateral from the lender when you borrowed money to buy it. Mortgage is a way to earn and invest money wisely. Ask anyone about mortgage before you apply for housing loan.