A lot of people ask what a mortgage is. Well here is the answer.
A mortgage is not a loan per se, but a form of security interest for a home loan taken over the real estate property that you are purchasing i.e. A mortgage is a legal agreement that conveys the conditional right of ownership on a real estate property by its owner (the mortgagor) to a lender (the mortgagee) as security for a home loan.
When you purchase a real estate property using a home loan, the property is placed in your name and is owned by you. However, the security (Mortgage) means that if you (the Mortgagor) breach the home loan contract terms set by the lender (the Mortgagee), then they have a right to collect their interest. For example, if you fail to make your home loan repayments, then you become in default to your lender. In certain cases, if you as the mortgagor (borrower) default on your mortgage repayments, the mortgagee (lender) can repossess the property and then sell it off.
Real estate mortgages are the most common type of mortgage. When personal property items such as cars, jewelry etc... are mortgaged, it is called a Chattel mortgage.
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