Meaning & Definition of word "Mortgage"

Mortgage

/ˈmɔːrɡɪdʒ/

1. A legal agreement in which a bank or other lender lends money at interest in exchange for taking the title of the debtor's property, with the condition that the conveyance of the title becomes void upon the payment of the debt.
- Example: After months of searching, they finally found a house and secured a mortgage to buy it.
2. The amount of money borrowed under a mortgage agreement.
- Example: She took out a mortgage of $300,000 to purchase her first home.
3. A conveyance of title to property as security for a loan.
- Example: The bank holds the mortgage until the loan is paid off in full.

1. To load or burden with a mortgage.
- Example: They decided to mortgage their property to fund the business.
2. To grant a mortgage on property.
- Example: He plans to mortgage his house to secure a loan for his new venture.

Late Middle English: from Old French 'mort' meaning 'dead' and 'gage' meaning 'pledge'.

first mortgage:

The primary loan taken out to buy real estate.

second mortgage:

A loan taken out against property already mortgaged.

mortgage rate:

The interest rate charged on a mortgage.

foreclosure:

The legal process by which a lender takes possession of a property due to the borrower's failure to make payments.

equity:

The value of an ownership interest in property, calculated by subtracting any outstanding obligations from the property's value.

amortization:

The process of paying off a debt over time through regular payments.

Meaning: House note

Example Sentence: He's been paying his house note for over a decade.

Meaning: Pledge

Example Sentence: When you take out a pledge on your home, you need to keep up with the payments.