What is a mortgage?
A mortgage is a loan from a financial institution that is used to purchase a property. The loan is secured by the property, which means that if the borrower defaults on the loan, the lender can foreclose on the property and sell it to recoup their losses.
Mortgages are typically repaid over a period of 15 to 30 years, although shorter terms are available. The interest rate on a mortgage is typically lower than the interest rate on a credit card or personal loan, making it a more affordable option for borrowers.
Dictionary Online
a legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the debtor’s property, with the condition that the conveyance of title becomes void upon the payment of the debt.
Wikipedia
A mortgage loan or simply mortgage, in civil law jurisdicions known also as a hypothec loan, is a loan used either by purchasers of real property to raise funds to buy real estate, or by existing property owners to raise funds for any purpose while putting a lien on the property being mortgaged. The loan is “secured” on the borrower’s property through a process known as mortgage origination. This means that a legal mechanism is put into place which allows the lender to take possession and sell the secured property (“foreclosure” or “repossession”) to pay off the loan in the event the borrower defaults on the loan or otherwise fails to abide by its terms.
