A mortgage loan is a type of secured loan used to finance the purchase of real estate, typically a home. These loans are secured by the property itself, which serves as collateral for the lender.

Interest rates on mortgages can be fixed (remain constant throughout the loan term) or variable (subject to change based on market conditions). Loan terms can vary widely, commonly ranging from 15 to 30 years, impacting monthly payments and total interest costs.

Down payments are usually required upfront, affecting the loan amount and terms. Lenders consider factors like credit score, income stability, and the property's value and condition when determining eligibility and interest rates.

Additional costs may include closing costs, appraisal fees, and private mortgage insurance (PMI) if applicable.

Timely mortgage payments can improve credit scores, while defaults can lead to foreclosure and damage credit. Refinancing options may be available to secure better terms or lower rates after obtaining the initial mortgage.

It's crucial for borrowers to carefully assess their financial situation, understand the terms of the mortgage, and ensure affordability before committing to a mortgage loan.