A home is usually the single most expensive purchase that a person will ever make. Few people, however, have enough money to pay for a home in its entirety up-front. Instead, most choose to take out a home loan, which is also called a mortgage.This entails borrowing money from our bank to buy the house and then spreading out the repayment of the loan over a long period of time. That period is often 30 years. The lender also charges the borrower a fee called interest, which is a certain percentage of the amount of the loan.