Okuzeka
Finance & Banking vocabulary · Loans & Credit

Mortgage

Meaning in finance & banking, with examples

/ˈmɔːrɡɪdʒ/nounCore term

In finance & banking, mortgage means: A long-term loan used to buy a home or other property. The property secures the loan, so the lender can have it sold if the borrower does not repay.

In Turkish: konut kredisi, ipotekli kredi, ipotek

How it is used

Central to retail lending. Customers apply for, take out and pay off a mortgage; banks talk about mortgage rates, terms of 15 to 30 years and loan-to-value (LTV). Borrowers make monthly mortgage payments.

Example sentences

  1. They took out a 20-year mortgage to buy a flat in Izmir.

  2. Mortgage rates fell, so many borrowers are asking about refinancing.

Common collocations

  • take out a mortgage
  • mortgage rate
  • mortgage payment
  • pay off a mortgage
  • mortgage application
  • collateralAn asset, such as property, cash or securities, that a borrower pledges to a lender and that the lender can sell if the loan is not repaid.
  • loanMoney that a bank or another lender gives to a person or company, which must be paid back over time, usually with interest.
  • fixed rateAn interest rate that stays the same for the whole loan or deposit term, or for an agreed period, so the payments do not change.
  • principalThe original amount of money borrowed or invested, not including interest. Each loan payment usually covers some interest and some principal.
  • borrowerA person or organisation that receives money from a lender and agrees to pay it back, usually with interest.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Loans & Credit

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This page explains English vocabulary for learners. It is not financial advice.