What do you call a long-term debt obligation where the borrower must make scheduled payments of principal and interest?

The correct concept in this context is that a mortgage is a specific type of long-term debt obligation that involves borrowing funds to purchase real estate or property. In a typical mortgage agreement, the borrower agrees to make regular, scheduled payments that include both interest on the principal amount and a portion of the principal itself. This structured repayment plan usually extends over a significant duration, often spanning 15 to 30 years, which distinguishes it from other forms of debt.

A mortgage is secured by the property being purchased, meaning that if the borrower fails to make the required payments, the lender has the right to foreclose on the property. This makes mortgages a common financial tool for individuals seeking to buy homes.

While a loan generally refers to any borrowed sum of money that is to be paid back, it does not specifically imply a structured payment schedule or collateral requirement like a mortgage. A bond is an investment vehicle where the issuer borrows funds and agrees to pay back the principal with interest, but it's typically related to corporations or governments rather than individual borrowing for personal property. An installment payment refers to a method of repayment rather than a type of debt itself, as it can apply to various loans and purchase agreements, not specifically to the broader category of long-term debt obligations.