what is mortgage?

First let me apologize for some of the rude people that have answered your question. When I started doing mortgages 7 years ago, I didn't know what a mortgage was either.

Basically, a mortgage is like a memorandum title for a car,except it puts the house up as collateral to the bank for a loan. The mortgage is the lien, the "note" is the actual loan agreement. If you do not pay the "mortgage loan" on time, then the bank uses the "mortgage" to repo or foreclose on the house. The "note" is what they use to take financial recourse action against you. The two go hand-in-hand together to create a security for the bank lending money to you.

I hope this answers your question, and for those of you with the rude comments, not everyone knows mortgage terms. Those of you in the business several years should remember then when you're dealing with people.

2007-09-29 14:18:42 · answer #1 · answered by Shawna Marie 3 · 0⤊ 0⤋

A mortgage is a value given by you as the home owner for certain consideration.

Lets say the consideration is that they give you 100K to buy a home, you take out what is called a mortgage. You agree to pay back the lender with interest.

The lender will secure this mortgage with a *Note* on your property. Basically meaning, you own the property but the have a lien on your property until you pay it off.

So basically.... a mortgage is an lien on your property where you received value in return.

2007-09-28 07:54:38 · answer #2 · answered by financing_loans 6 · 1⤊ 0⤋

When someone buys a home two of the documents they sign are a promissory note for the amount they borrowed that specifies the repayment terms and a deed of trust or "mortgage" that places a first mortgage lien on the property they bought as security for the promissory note.

That lien provides the lender the ability to pursue recovery of the property to compensate the lender if the borrower defaults and does not repay the promsiorry note. this type of action is called a foreclosure.

2007-09-28 07:56:01 · answer #3 · answered by Anonymous · 2⤊ 0⤋

to put it simply, mortgage is basically a debt or obligation to be paid for a real property which in your case is a house. in other words, it is as if you asked money from a bank to buy a house and the amount still unpaid to the bank is called the mortgage payable. If you are unable to pay this debt, then the bank/lender will have the right to take ownership of your house. goodluck : )

2007-09-28 07:58:25 · answer #4 · answered by spideyboy 1 · 0⤊ 0⤋

A mortgage is a loan to purchase real estate. The loaner retains a lien on the house until the mortgage is paid off.

See Wikipedia for definition: http://en.wikipedia.org/wiki/Mortgage

For more information, you can check out http://www.citimortgage.com/Mortgage/Home.do?page=firsttimehome

2007-09-28 07:55:19 · answer #5 · answered by Jim W 6 · 0⤊ 0⤋

Is this a joke? A mortgage is any loan secured by the property that the loan was used to purchase.

2007-09-28 07:52:18 · answer #6 · answered by Bostonian In MO 7 · 1⤊ 1⤋

ok if this is not some kind of hidden code to activate a sleeping cell then:
When you borrow money to buy a house you sign two instruments one is the promissory note which states the terms by which you promise to pay back what you borrow. The other instrument is a mortgage which is the instrument which you give the lender to allow them to take you to court and ask the court to take away your interest in the property you purchased using the money you promised to pay back in the note and didnt.

2007-09-28 07:56:49 · answer #7 · answered by newmexicorealestateforms 6 · 0⤊ 3⤋

A loan used to buy a house.

2007-09-28 07:52:28 · answer #8 · answered by Anonymous · 1⤊ 0⤋

Lay mans terms, an agreement to pay. Note, description of pmt.

2007-09-28 07:55:09 · answer #9 · answered by Anonymous · 0⤊ 0⤋

9 answers