Definition of Mortgage:
Convey (a property) to a creditor as security on a loan.
A legal agreement by which a bank or other creditor lends money at interest in exchange for taking title of the debtors property, with the condition that the conveyance of title becomes void upon the payment of the debt.
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 lenders 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.
Synonyms of Mortgage
Mortgage, Put up as collateral, Guarantee, Pawn, Credit, Advance, Adjustment mortgage, Antichresis, Blanket mortgage, Bond, Bottomry, Bottomry bond, Chattel mortgage, Closed mortgage, Dead pledge, Deed of trust, Deposit, Dip, First mortgage, Go bail, Handsel, Hock, Hypothec, Hypothecate, Hypothecation, Impignorate, Installment mortgage, Leasehold mortgage, Lien, Living pledge, Mortgage deed, Mortuum vadium, Participating mortgage, Pawn, Pledge, Post, Put in hock, Put in pawn, Put up, Second mortgage, Security agreement, Spout, Stake, Third mortgage, Trust mortgage, Vadium mortuum, Vadium vivum
How to use Mortgage in a sentence?
- I put down a hundred thousand in cash and took out a mortgage for the rest.
- I could not go out with my friends to the restaurant because I had too many bills to pay, plus the mortgage was due.
- The family was worried about being able to afford their mortgage after their mother got laid off of her job.
- The estate was mortgaged up to the hilt.
- 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.
Meaning of Mortgage & Mortgage Definition