Finance Quick Answers
What is a mortgage?
A mortgage is a loan from a lending institution (bank, savings and loan, credit union, etc.) where the property it finances serves as collateral for the loan. Collateral protects the lender. For example, when your house is used as collateral, the lender can force a sale of your home to recoup losses if you stop making the home mortgage payments.
Brenda Procter, M.S., Consumer and Family Economics, College of Human Environmental Sciences, University of Missouri-Columbia
If you'd like to learn more about this and other personal finance topics, the University of Missouri offers 'Personal & Family Finance,' a correspondence course, through the Center for Distance and Independent Study (800-609-3727). Information about this course is available at http://cdis.missouri.edu/CourseInfo/DetailCourseInfo.asp?1985.
Last update: Tuesday, July 22, 2008