Are mortgages compound interest?

A mortgage is a loan that is used to purchase a property. The borrower agrees to repay the loan over a set period of time, usually 15 or 30 years. The loan is secured by the property itself, which means that if the borrower fails to make the payments, the lender can foreclose on the property and sell it in order to recoup their losses. Mortgages typically have fixed interest rates, which means that the borrower will pay the same amount each month for the life of the loan. However, some mortgages have variable interest rates, which means that the monthly payments can go up or down depending on market conditions. In general, mortgages are repaid with compound interest, which means that the borrower will pay interest not only on the original loan amount but also on any interest that has accrued over time. This can make it difficult to predict exactly how much will need to be paid each month, but it does allow for lower monthly payments during periods of low interest rates. Ultimately, whether or not a mortgage has compound interest depends on the terms of the loan agreement.

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