What Is The Definition Or Meaning Of Mortgage

Mortgage Blog

What Is The Definition Or Meaning Of Mortgage.
This is an email question that I have received many times. Most people know what a mortgage is, but what is the definition or meaning of the word mortgage.
Well, there are many definitions for ‘mortgage’. Essentially a mortgage is a form of security (most commonly real estate property) used to secure a debt (home loan). The mortgagee (usually the bank or lender) has first charge over the real estate property, this is the security used for the home loan. The mortgagor (the person who has the home loan) offers the mortgagee (the bank or lender) the security (real estate property) to secure the home loan against it.
The mortgagee (bank or lender) may choose to sell the security (the real estate property) if the mortgagor breaches the home loan (or mortgage) contract to recover their funds. The mortgagee usually has the first charge ( first option) over the security used to secure the home loan. If you have a mortgage, the mortgage documents you received from your bank or lender, will have all the terms and conditions of your mortgage contract.
There are many definitions of mortgage. Have a look at a few –
Wikipedia - http://en.wikipedia.org/wiki/Mortgage
The Free Dictionary - http://www.thefreedictionary.com/mortgage
Google - http://www.google.com.au/ define:mortgage
If you have any comments, or your definition or meaning of ‘mortgage’, please leave them below. If you would like more personal advice, please contact me anytime.