👉 The word "mortgage" is a financial institution that provides loans and mortgages to help people purchase homes. In terms of our current understanding, we're talking about a loan where the borrower has to provide collateral, such as real estate or a down payment, in order to secure the loan.
So, if your credit score is 650, it means you have the ability to borrow money without having to pay back the interest with the same amount of principal. In other words, your lender will not be demanding a high-interest rate on every dollar borrowed. An example sentence using "mortgage" could be: "It's like borrowing $100,000 from me for a house - you need to put up collateral and pay back 2% interest on it. It's just as secure as a car loan because I own the vehicle."
