mortgage
mortgage definition - finance
A
debt instrument that enables the borrower (mortgagor)
to receive funds to purchase real estate. In return, the lender receives
a lien on the property as security that the loan will be repaid. The borrower
receives access to needed funds and the lender earns interest. The borrower has
full use of the property and ownership rights. The lien is removed when the
mortgage is paid off in full.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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