A legal agreement that conveys the conditional right of ownership on an asset or property by its owner (the mortgagor) to a lender (the mortgagee) as security for a loan. The lender's security interest is recorded in the register of title documents to make it public information, and is voided when the loan is repaid in full.
Virtually any legally owned property can be mortgaged, although real property (land and buildings) are the most common. When personal property (appliances, cars, jewelry, etc.) is mortgaged, it is called a chattel mortgage.In case of equipment, real property, and vehicles, the right of possession and use of the mortgaged item normally remains with the mortgagor but (unless specifically prohibited in the mortgage agreement) the mortgagee has the right to take its possession (by following the prescribed procedure) at any time to protect his or her security interest. In practice, however, the courts generally do not automatically enforce this right when it involves a dwelling house, and restrict it to a few specific situations. In the event of a default, the mortgagee can appoint a receiver to manage the property (if it is a business property) or obtain a foreclosure order from a court to take possession and sell it. To be legally enforceable, the mortgage must be for a definite period, and the mortgagor must have the right of redemption on payment of the debt on or before the end of that period. Mortgages are the most common type of debt instruments for several reasons such as lower rate of interest (because the loan is secured), straight forward and standard procedures, and a reasonably long repayment period. The document by which this arrangement is effected is called a mortgage bill of sale, or just a mortgage.
Use mortgage in a sentence
The family was worried about being able to afford their mortgage after their mother got laid off of her job.
I could not go out with my friends to the restaurant because I had too many bills to pay, plus the mortgage was due.
It is always important to make your payments on time and stay up to date to get rid of your mortgage as quick as possible.
4 Tips for Paying Off Your Biweekly Mortgage Even Faster"1. Have a larger down payment: The larger your down payment, obviously the less you have to repay in a loan. 2. Get a shorter-term loan: you can have a biweekly mortgage that pays off a loan in 30 years, 45 years, or even 70 years in some cases, but generally a biweekly mortgage is designed to get you out of debt mortgage quickly, and one of the best ways to manage that is to set up for a shorter-term mortgage with your lender right from the beginning. 3. Budget and pay a little extra: It may not seem like much if you sent in an extra $10 per month, but $120 per year over just a 15 year loan is $1,800 less than you would otherwise have had to pay interest on - that could be the equivalent of 3-4 monthly payments. 4. Pay cash for closing: A common mistake many first-time homeowners make is jumping on the option to save their cash by rolling their closing costs for the sale of the home into the loan and thinking they got away with something when their mortgage payment goes up only a few of dollars per month as a result. When you are considering a home, having cash for the down payment is very important, but not at the expense of having no money to handle your closing costs up front."