A mortgage loan is money you borrow from a bank or lender to buy a house. Here’s how it works in simple terms:

1. Down Payment: When you buy a house, you usually need to pay a portion of the cost upfront, called a down payment. This is often a percentage of the total price.

2. Loan Amount: The bank lends you the rest of the money you need to buy the house. This is the mortgage loan.

3. Monthly Payments: You pay back the loan in monthly installments. Each payment includes part of the loan amount (principal) and interest (the cost of borrowing the money).

4. Interest Rate: This is the percentage the bank charges you for borrowing the money. A lower rate means lower payments.

5. Term: Mortgages usually last for a long time, like 15 or 30 years. The longer the term, the lower your monthly payment, but you’ll pay more interest over time.

6. Collateral: The house itself is used as collateral. If you can’t make the payments, the bank can take the house back through a process called foreclosure.

In short, a mortgage helps you buy a home by borrowing money, which you pay back over time with interest.