What Is the Difference Between a Mortgage and an Agreement?

Although mortgage agreements and mortgage loans are closely connected in real estate and financing, they serve different roles in the homebuying process and in commercial real estate. Simply put, the mortgage loan is the money that’s borrowed, while the mortgage agreement is the legal document that explains the rules for paying it back. But what exactly does the mortgage agreement do and how does it affect the mortgage loan?

What Is a Mortgage Agreement?

A mortgage agreement is a legally binding contract between a lender and a borrower that explains the terms and conditions of a mortgage loan used to buy real estate. This document gives all the details about the loan.

More importantly, the mortgage agreement gives the lender the legal right to take the property — usually the one being purchased — if the borrower stops making payments. For most homebuyers, the home they’re buying is used as collateral, which the lender can claim through foreclosure if the loan is not paid back.

A mortgage agreement usually includes:

• The exact amount of the mortgage loan (the principal)
• The schedule for repayment, including early payment terms
• The interest rate and any changes to it
• Rules about insurance and taxes
• Requirements for maintenance and upkeep
• Occupancy rules for commercial loans

It also includes:

• What happens when payments are missed?
• How long the grace period is and any late fees?
• What counts as default and what can trigger foreclosure?

How Does a Mortgage Agreement Work?

When a borrower signs a mortgage agreement, they agree to repay the mortgage loan within a certain time and by following a set schedule. They also agree to follow all the other rules in the agreement.

For homebuyers, signing the mortgage agreement means they agree to:

• Make monthly payments that include both the principal and interest
• Pay regularly and on time
• Have a valid home insurance policy
• Stay current with property taxes
• Keep the property in good condition

The mortgage agreement stays active until the mortgage loan is completely paid off, including any extra charges. It becomes official and legally binding once both the borrower and lender sign it and it is recorded with the proper government agency. If the borrower fails to follow the terms of the agreement, the lender can begin the foreclosure process.

What Is a Mortgage Loan?

The mortgage loan is the actual sum of money given by a lender to a borrower to buy real estate. Generally, the mortgage loan is given as a lump sum. The borrower must then repay it with interest, following the terms in the mortgage agreement. For most homebuyers, this means making monthly payments that include:

• The principal or the amount borrowed. For example, if the loan is $500,000, that is the principal. As the borrower makes payments, the principal goes down.
• The interest or the amount the lender charges for giving the loan. This may be a fixed rate or may change over time, depending on the loan.
• Mortgage insurance which usually includes homeowner’s insurance. But if the buyer puts down less than 20% of the home’s price, the lender will likely require private mortgage insurance (PMI) as well.

There are different types of mortgage loans, including fixed-rate, adjustable-rate and reverse mortgages. The right type depends on the borrower’s financial situation, interest rates, lifestyle, goals and long-term plans. Other factors can include the property’s location, the borrower’s job history and the purpose of the property. You can learn more about types of home loans here.

What Is the Difference Between a Mortgage and an Agreement?

The difference between a mortgage and an agreement is in what they do: The mortgage loan is the money being borrowed. The mortgage agreement is the legal document that explains the conditions under which the money is borrowed, how it will be repaid and what happens if it isn’t.

	Mortgage Loan	Mortgage Agreement
Definition	Money borrowed to buy a property	Contract that defines repayment terms
Function	Provides money for buying real property	Legally secures the loan and outlines conditions
Purpose	Allows borrower to buy property with loan money	Protects the lender’s interest and enforces repayment
Legal Framework	Creates a debt the borrower must repay	Secures lender’s right to foreclose in case of default

Where and How Can You Research Mortgages and Mortgage Documents?

Reviewing mortgage documents is important when doing research for any real estate deal, whether you’re a homebuyer, investor or real estate professional. There are several ways to research mortgage documents. Each has its pros and cons in terms of time, cost and accuracy.

1. Online Real Estate Platforms Like PropertyShark

Online platforms like PropertyShark make it easy to research property data, including mortgage documents. Users can access detailed property reports with verified data and view recorded documents such as:

• Mortgage history, such as original loan amounts, lender names and recording dates
• Deed and title transfers, showing ownership changes over time
• Lien records including mechanics’ liens and tax liens
• Foreclosure filings, auction schedules and distressed property alerts
• Legal property descriptions, zoning details and building characteristics.

PropertyShark brings together public records, legal filings and city data in one place, aggregating more than 2,000 sources. You can search by address, parcel number or owner name (current and past) and quickly view mortgage data and recorded documents in their dedicated sections.

2. Title Companies

Although not mandatory for all types of real estate transactions, title insurance is usually required by lenders in deals financed through mortgage loans as an added layer of security. Title companies can gather full property histories, including past sales, unpaid claims, liens and foreclosure notices.

While helpful for finalizing sales and clearing ownership questions, accessing mortgage documents through a title company is usually slower and will require a fee for each property investigated.

3. County Recorder’s Office

Most mortgage documents are public records, so you can access and research them at the local county recorder’s office. Many counties now have online portals where you can search for various property records using the address or parcel number.

However, not all counties have online databases, especially rural ones. Some records may be incomplete or the search filters may be basic, so you may need to visit the county recorder’s office in person and manually search for mortgage documents.

Why Understanding Mortgage Agreements and Loans Matters

Knowing the difference between a mortgage loan and a mortgage agreement helps buyers, investors and professionals make informed choices. It helps you avoid legal problems and pick financing that fits your goals. A mortgage agreement does more than just list terms — it protects both the borrower and the lender.

Whether you’re financing a home or a commercial property, always review both the loan details and the agreement terms. And when researching property documents, tools like PropertyShark offer a fast, reliable way to find verified data like loan amounts, ownership history and legal records, all in one place.

FAQ

What is another name for a mortgage agreement?

A mortgage agreement may also be referred to as a mortgage contract or deed of trust, depending on the jurisdiction.

Is a mortgage offer the same as a mortgage agreement?

No. A mortgage offer is a lender’s proposal to provide a loan under specific terms. A mortgage agreement is the finalized contract that legally binds both parties to those terms.

Can I write my own mortgage agreement?

While it’s possible to draft your own agreement, it’s highly recommended to consult legal professionals to ensure compliance with local laws and to protect all parties involved.

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About PropertyShark

PropertyShark is an online real estate database and property research tool that provides building details, ownership information, comparable sales, and foreclosure data. Founded in 2003, PropertyShark serves real estate professionals and consumers in New York and other major U.S. markets.