[This is part of the series: The Complete Guide To Economics 101.]
What is a mortgage?
A Mortgage is a loan on a real estate property.
Both individuals and firms are frequent buyers of real estate that use mortgages for purchase.
Collateral for a mortgage loan is the property itself – in that the sense that property is repossessed by the lender in the case of borrower default.
After they are originated, mortgages can be packaged and sold in the capital markets.