What is a Mortgage?
A mortgage is a loan secured by a property and paid in installments over a set period of time. The mortgage secures your promise that the money borrowed will be repaid. The mortgage is recorded in land records to provide constructive notice of the debt and the collateral to which it is pledged.
A mortgage will name the lending institution, the borrower, the principal amount of the debt owed, the property address and legal address, and the legal right of the lender and debtor. The mortgage will reference an unrecorded note, which spells out the repayment terms from the debtor.
The word mortgage comes from the French law term “dead pledge”, meaning that the pledge ends or “dies” when a the debt is paid in full or the house is taken through foreclosure.
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