Mortgage
A loan used to purchase or refinance real estate, where the property serves as collateral. Mortgages are installment loans with terms typically ranging from 10 to 30 years. Missing mortgage payments can lead to foreclosure. Minimum credit scores vary by loan type (FHA: 500, conventional: 620).
Related guides
- Full credit & FICO® glossary
Browse all defined terms by category.
- Installment Loan
A loan repaid in fixed monthly payments (installments) over a set period of time. Examples include mortgages, auto loans, student loans, and personal loans. Unlike revolving credit, installment loans have a fixed balance that decreases with each payment.
- Foreclosure
The legal process by which a lender takes possession of a home when the borrower fails to make mortgage payments. Foreclosure typically causes a FICO score drop of 100–160 points and remains on your credit report for seven years from the date of the first missed payment.
Frequently Asked Questions About Mortgage
What does Mortgage mean?
A loan used to purchase or refinance real estate, where the property serves as collateral. Mortgages are installment loans with terms typically ranging from 10 to 30 years. Missing mortgage payments can lead to foreclosure. Minimum credit scores vary by loan type (FHA: 500, conventional: 620).
Is Mortgage important for my FICO® score?
Understanding Mortgage helps you manage your credit profile more effectively, which in turn supports a stronger FICO® score.