Real Estate Terms Dictionary
Definition of 'Mortgage'
A mortgage is a loan needed to purchase real estate. The borrower needs to repay it within a certain amount of time through a series of predetermined payments.
What is a Mortgage loan:
The purpose of a mortgage loan is to allow real estate buyers to purchase property without paying the entire amount up front. Once a mortgage is approved, the lender receives an interest in the real estate that was purchased in order to avoid financial loses if the borrower defaults on the loan payments. When the borrower does not make several payments in a row, the mortgage lender can place a claim on the property.
Here's a real-life example from one of the properties researched on PropertyShark:
The glossary is intended to provide real estate professionals and home buyers with a basic understanding of various specialized terms related to legal rights over a property. All terms appear in public records such as ACRIS. We do not take responsibility for the legal accuracy of the definitions provided and ask that use of these explanations in a legal setting be made only after checking with a lawyer or another specialist in the field.