2007-12-30 22:45:32 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
A mortgage is an agreement between a lender and a borrower with the debt secured by real estate such as a home. Most home buyers cannot afford to pay in full for a house, therefore they arrange to borrow part of the money by signing a mortgage agreement, and paying the principal and interest on the loan over a number of years. To reduce the risk of lending the money, the mortgage is secured by the home on which the loan is made. If the borrower cannot pay the mortgage when due, the mortgage holder can foreclose and take possession of the home so that it can be sold to repay the debt. Mortgages are evidenced by a written document which is recorded with an appropriate government office.
2007-12-30 22:52:42 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Mortgage is the term used to describe the agreement between a borrower and a lender. It holds the terms of the agreement, how long, the loan amount, the payments. The property itself is the collateral.
Depending on which state you live in, you may get a deed of trust instead. Basically the same thing, except a third party actually holds the deed of trust, rather than the lender. Both types are referred to as mortgages by most people.
2007-12-31 03:05:14 · answer #2 · answered by Debdeb 7 · 0⤊ 0⤋
Its what you have if you own a home!
Unless you paid cash for the full price of the home! =)
2007-12-31 01:20:43 · answer #3 · answered by King Violation. 5 · 1⤊ 0⤋
A loan to finance the purchase of real estate, usually with specified payment periods and interest rates. The borrower (mortgager) gives the lender (mortgagee) a lien on the property as collateral for the loan.
2007-12-30 22:52:38 · answer #4 · answered by Anonymous · 1⤊ 0⤋
It's using one's property usually for the payment of a debt...
It's like giving the bank your property in payment for an amount you've borrowed or need to pay for...
2007-12-30 22:52:13 · answer #5 · answered by kim 5 · 1⤊ 1⤋