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LeoGlossary: Mortgage

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A loan provided by a bank or other financial institution that allows a purchaser to buy a property. The loan is secured by the property itself, using it as collateral. If the purchaser defaults, the property can be acquired by the lender in foreclosure.

The buyer agrees to make a set number of payments for a specific amount. These payments include both principal and interest charged for the use of the money.

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