What is a "mortgage"?

A mortgage is a legal document by which the owner (buyer) transfers to the lender an interest in real estate to secure the repayment of a debt, evidenced by a mortgage note.

Do I need a "mortgage"?

Probably...if you want to own a house or other types of real estate.

A house is one of the most-expensive items you will ever buy in your life. Few people have saved enough money to buy a house with cash. So, just like you might use a credit card to buy now and pay later, a mortgage is like a specialized form of credit where you get to buy a house now and live in it while paying for it over the next 30 years or so.