Here's an example of a mortgage loan:

Let's say you want to buy a house for $300,000. You don't have enough money to pay for it outright, so you decide to get a mortgage loan from a bank.

The bank agrees to lend you the money to buy the house, but you have to pay it back over a period of 30 years. The interest rate on the loan is 4%, which means you will have to pay interest on the loan in addition to the principal amount you borrowed.

Assuming you make a 20% down payment of $60,000, your loan amount will be $240,000 ($300,000 - $60,000).

With a 4% interest rate and a 30-year term, your monthly mortgage payment will be around $1,145. This includes both the principal and interest payments.

Over the course of 30 years, you will pay a total of $412,153.92 in principal and interest on the loan.

If you fail to make your mortgage payments, the bank may foreclose on your house, meaning they can take possession of it to recover their money.