Definition - What does Mortgage mean?
A mortgage is a loan that is used to purchase real property. Mortgages are commonly given by mortgage lenders such as banks. Many people use mortgages to purchase property in America.
In the context of the law, people who take out mortgages have a legal obligation to repay the principal, plus interest to the lender in the scheduled timeline.
Justipedia explains Mortgage
The property that mortgages are used to buy are used as collateral for the loan. So, if a mortgage borrower defaults on the mortgage, the lender can then seize the property (the collateral).
Mortgages are often worth large amounts of money, such as hundreds of thousands or even millions of dollars. Some people even choose to purchase mortgage insurance to help prevent them from defaulting in the event that they cannot make a few payments for some reason.
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