Key takeaways A mortgage is a loan that helps you purchase a home, with the home itself serving as collateral. Mortgage payments typically consist of principal (the amount borrowed), interest, property taxes and homeowners insurance. They can also include mortgage insurance. To qualify for a conventional mortgage — the most common type — you’ll typically need a credit score of 620 or higher and at least 3% of the home price for a down payment. What is a mortgage? A mortgage is a loan used to buy a house. Mortgages are available with a variety of terms — the length of time to repay the loan — but they usually range between eight and 30 years. You repay your mortgage in monthly installments, which typically include both interest and principal payments, as well as escrow payments to cover property taxes and homeowners insurance. Shopping for a mortgage is one of the few instances when comparison-shopping can save you money every month.…