Answer
Mortgages from banks are usually large sums of money with a small interest amount. The loans last long term and the house will be listed as collateral. Some programs exist that limit the risk of owners defaulting.
Work Step by Step
This is a question that asks you to understanding banking concepts. The ideology behind a mortgage is to earn money and maximize lending. By offering smaller interest rates people will be more likely to borrow money. This is still generally a good investment for the bank because loans are long term so the interest accrued is still worthwhile.
