A mortgage is a loan used to buy a house. The mortgage is secured by the home, so if the borrower does not pay, the home can be foreclosed upon. The length of a mortgage can be anywhere from one year to thirty years, with 15 year mortgages and 30 year mortgages being the most common. The rate on a mortgage can be fixed for the length of the mortgage, or it can be variable, based on a predetermined benchmark and adjustment period. Adjustable rate mortgages can be detrimental to the borrower if he is not prepared for a payment increase when the rate adjusts. Sometimes, the payment would decrease, depending on what benchmark is used. Mortgages are typically between 97-80 percent of the price of the home. A borrower would have a down payment between 3-20 percent of the purchase price, and the mortgage would be for the remaining amount. Interest rates on a mortgage are favorable and between 4-8 percent, depending on the borrowers credit, income, the size of the down payment, and the length of the mortgage. Generally, the shorter the mortgage, the lower the interest rate. A 15 year mortgage can save the borrower money because the interest rate is lower and the loan is paid back quicker. The decreases the total amount of interest the borrower pays. When applying for a mortgage, a person will often need to provide proof of income and savings. Paycheck stubs, tax returns, and financial statements will all need to be provided to the lender. If you do not have proof of income and savings, you might still be able to get a mortgage, just at a higher interest rate.