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A mortgage is a loan given to the buyer by a lender. Each mortgage loan usually has 2 components, the principal balance and the interest portion. Usually the first few years of repayment are purely interest and does not reduce the principal amount owing on the mortgage loan.
A mortgage term is the length of time that is given to you to repay the money back. It can vary from 15 to 30 years depending on the amount of the loan and the interest rate. The 'rate' is the interest rate charged on the principal loan amount. Many factors affect the interest rate including how much you make, your current credit score, how much you can afford to put down right away and the perceived value of the home you wish to purchase.
Every mortgage has associated closing costs that you need to be aware of. There are some rare ocassions where closing costs may be waived. These costs can include appraisal fees, attorney and legal fees, and so forth. Sometimes you might find some unnecessary fees attached to the closing costs bill so make sure that you clearly know what kinds of fees you are getting charged for.
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