A loan to finance construction or purchase of real estate, whereby the borrower gives the lender a lien (a claim against the real estate) as security for repayment.
A mortgage, or more precisely a mortgage loan, is a long-term loan used to finance the purchase of real estate.
As the borrower, or mortgager, you repay the lender, or mortgagee, the loan principal plus interest, gradually building your equity in the property.
The interest may be calculated at either a fixed or variable rate, and the term of the loan is typically between 10 and 30 years.
While the mortgage is in force, you have the use of the property, but not the title to it. When the loan is repaid in full, the property is yours. But if you default, or fail to repay the loan, the mortgagee may exercise its lien on the property and take possession of it.
Document signed by a borrower when a home loan is made that gives the lender a right to take possession of the property (a security interest) if the borrower fails to pay off on the loan.
a legal document that pledges property to a lender as security for the repayment of a loan. The term is also used to refer to the loan itself.
A contract, signed by a borrower when a home loan is made, that gives the lender the right to take possession of the property if the borrower fails to pay off, or defaults on, the loan.
An agreement in which a property owner grants a creditor the right to satisfy a debt by selling the property in the event of a default.
- Browse Related Terms: First Mortgage, Guarantee, Hazard Insurance, Lender-Placed Insurance, Lien, mortgage, Mortgage Insurance (MI), second mortgage, Suspension
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