A mortgage loan is an amount of money loaned to someone (borrower or mortgagee) that is secured by real estate. In general use, the word mortgage is often used to refer to a mortgage loan. Mortgage loans are made by banks or mortgage loan companies. These companies have certain criteria borrowers must meet to qualify for a loan. Qualifications include income verification, determining present debt obligations, and credit history. There are many characteristics of mortgage loans including the amount of the loan, the terms or repayment, the interest rate, and maturity date. There are balloon payment mortgage loans when a large amount or the entire amount of the loan comes due, though most mortgage loans are amortized over years with monthly installments or payments. In most cases, the amount of principal of the loan is reduced as payments are made however there are interest only mortgage loans.