Mortgage Market May be Regional \ Historical
Borrower: the person borrowing who either has or is creating an ownership interest in the property.

Lender: any lender, but usually a bank or other financial institution.

Principal: the original size of the loan, which may or may not include certain other costs;
as any principal is repaid, the principal will go down in size.

Interest: a financial charge for use of the lender's money.

Foreclosure or repossession: the possibility that the lender has to foreclose,
repossess or seize the property under certain circumstances is essential to a mortgage loan; without this aspect,
the loan is arguably no different from any other type of loan.

Many other specific characteristics are common to many markets, but the above are the essential features.

Governments usually regulate many aspects of mortgage lending, either directly (through legal requirements, for example)
or indirectly (through regulation of the participants or the financial markets, such as the banking industry),
and often through state intervention (direct lending by the government, by state-owned banks, or sponsorship of various entities).

Other aspects that define a specific mortgage market may be regional, historical, or driven by specific characteristics of the legal or financial system.

Debt Consolidation are generally structured as long-term loans, the periodic payments for which are similar to an annuity
and calculated according to the time value of money formulae. The most basic arrangement would require a fixed monthly payment over a period of ten to thirty years,depending on local conditions. Over this period the principal component of the loan (the original loan) would be slowly paid down through amortization.

In practice, many variants are possible and common worldwide and within each country.

Lenders provide funds against property to earn interest income, and generally borrow these funds themselves (for example, by taking deposits or issuing bonds).

The price at which the lenders borrow money therefore affects the cost of borrowing.
Lenders may also, in many countries, sell the mortgage loan to other parties who are interested in receiving the stream of cash payments from the borrower,often in the form of a security (by means of a securitization). In the United States, the largest firms securitizing loans are Fannie Mae and

Freddie Mac,which are government sponsored enterprises.

Mortgage lending will also take into account the (perceived) riskiness of the mortgage loan, that is,the likelihood that the funds will be repaid (usually considered a function of the creditworthiness of the borrower);

That if they are not repaid, the lender will be able to foreclose and recoup some or all of its original capital;
and the financial, interest rate risk and time delays that may be involved in certain circumstances.