A home loan, also known as a mortgage, is a type of secured loan used to purchase, build, or refinance a property. In a home loan, the property itself serves as collateral, which means the lender can seize the property if the borrower fails to repay the loan as agreed. Home loans are typically provided by banks, credit unions, and other financial institutions.

The loan amount usually covers a significant portion of the home's purchase price, with the borrower responsible for paying a down payment (a percentage of the home's value). Home loans come with fixed or variable interest rates, and the repayment terms can range from 10 to 30 years, depending on the lender and the borrower's preferences.

There are different types of home loans, such as:

• Fixed-rate mortgages: The interest rate remains constant throughout the loan term, offering predictable monthly payments.
• Adjustable-rate mortgages (ARMs): The interest rate can change over time, typically after an initial period, which can lead to fluctuations in monthly payments.
• FHA loans: Government-backed loans that offer lower down payments and easier qualification requirements, aimed at first-time homebuyers or those with less-than-perfect credit.
• VA loans: Loans for eligible veterans and their families, typically offering favorable terms like no down payment and no private mortgage insurance (PMI).

Home loans are essential for most people looking to buy a home, allowing them to spread the cost of the property over many years. However, failure to repay a home loan can result in foreclosure, where the lender takes possession of the property to recover the outstanding loan balance.