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what is a mortgage presented by wallstreetsurvivor.com a mortgage is a loan buy a bank or other financial institution that a person can use to finance the purchase of a home a mortgage is different from other loans like personal or student loans since the bank can use your house as collateral meaning if you dont pay the bank back on time they can take possession of your home here is mark and lisa mark and lisa are newlyweds looking to buy their first home after a long search they find the perfect home with the not so perfect price tag of 500 000 more than they have in the bank what are they to do mark and lisa head over to the bank the banker suggests that they take out a mortgage to finance the home the banker asks them how much they are willing to put down as a down payment the down payment is the amount that mark and lisa pay up front usually a down payment needs to be at least around 20 of the price of the home but this amount varies from bank to bank mark and lisa have been savi