Question

Lindsay recently purchased a home. Like most people, she did not have the funds to pay cash, so she took out a loan. Lindsay used the property she was purchasing to guarantee the loan. She also had to pay a portion of it in advance.

Lindsay took out a(n)
to purchase her new home.

She used
in the form of the property to back the loan.

Lindsay also paid money in advance. This is known as a(n)
.

If Lindsay does not make her loan payments on time, the bank will most likely
.

Answer 1

Lindsay took out a mortgage to purchase her new home.

She used collateral (the property itself) to back the loan.

Lindsay also paid money in advance. This is known as a down payment.

If Lindsay does not make her loan payments on time, the bank will most likely foreclose on the property.