Final answer:
Most people need a mortgage to buy a home because homeownership is a long-term commitment and houses are usually expensive. Borrowing money from a bank allows individuals to spread out the cost over many years, with monthly mortgage payments.
Step-by-step explanation:
Most people need a mortgage to buy a home because homeownership is a long-term commitment and houses are usually expensive. By borrowing money from a bank, individuals can make the purchase and spread out the cost over many years. To ensure that borrowers are able to make their payments, lenders often require a down payment and assess the borrower's creditworthiness.
For example, if someone wants to buy a house for $100,000, they may be required to put down $20,000 as a down payment and borrow the remaining $80,000 from the bank. Over time, the borrower repays the loan with interest through monthly mortgage payments.