What is a mortgage? Choose the correct answer below. A. A mortgage is the portion of the sale price of a home that the buyer initially pays to the seller. B. A mortgage is a one-time charge that equals \( 1 \% \) of the home loan amount. C. A mortgage is a long-term installment loan for the purpose of buying a home. D. A mortgage is an account into which lending institutions often require a monthly payment in order to pay real estate taxes and insurance.

A mortgage is a long-term installment loan for the purpose of buying a home. When you take out a mortgage, you're basically borrowing money to purchase real estate, and you'll repay that loan plus interest over time, often spanning 15 to 30 years. This allows many folks to afford the home of their dreams without needing to cough up the entire sale price upfront. In the wild world of mortgages, it's essential to understand that they come packaged with various types—fixed-rate, adjustable-rate, and more! If you're scouting for a home, think like a savvy treasure hunter. While a fixed-rate mortgage offers stability, an adjustable-rate mortgage might bring a shiny lower initial rate. Just make sure to weigh the pros and cons to find the perfect match for your budget!