| Many a borrower has gotten hung up on mortgage | | | | Defining Other Types of Mortgages Defined |
| lingo and financial jargon. When brokers and lenders | | | | Conventional Mortgage: With a conventional mortgage, |
| take the time to explain one can only be more | | | | the lender obtains a lien or defeasible legal title to the |
| confused. | | | | property in return for the payment of the amount of |
| Adding to the confusion is the fact that one mortgage | | | | money lent. |
| is not like the other. Exactly what do home mortgages | | | | FHA Mortgage: An FHA mortgage is a conventional |
| purport to be? Is a mortgage a loan? Is it a contract? | | | | mortgage which is insured in whole or in part by the |
| Is it the deed? What parties are involved and how is | | | | Federal Housing Authority. |
| actual property ownership defined? As home loan | | | | Purchase Money Mortgage: A purchase money |
| borrower, are you the actual owner of the property | | | | mortgage is one given to secure a loan used to buy |
| being financed? We need only look closer at the | | | | the property. |
| definitions for each party involved in the process. | | | | Senior Mortgage |
| Mortgages by definition are devices used to create a | | | | The first mortgage. A first (senior) mortgage on the |
| lien on real estate properties by contract. Such device | | | | property has priority over any second or subsequent |
| is used as a method by which individuals or businesses | | | | (junior) mortgages on the property; the senior lender |
| can buy residential or commercial property without | | | | has a more secure interest in the event of a default |
| paying the full value upfront. | | | | since the senior obligations are paid first in the event of |
| Mortgagor Defined | | | | foreclosure and sale. |
| The mortgagor (borrower) is the borrower of money | | | | Adjustable Rate Mortgages: An adjustable rate |
| for a mortgage. The party of a mortgage agreement | | | | mortgage (also called "ARM") offers a fixed initial |
| who receives financing for real estate property. The | | | | interest rate and a fixed initial monthly payment. After |
| person who gives a mortgage in return for money to | | | | the initial period is over, the rate and term of the |
| be repaid. Sometimes spelled mortgager. | | | | mortgage can be modified at predetermined times |
| Mortgagee Defined | | | | under the agreement to reflect the current market |
| The mortgagee (Lender) is the party lending the | | | | mortgage rates. |
| money and receiving the mortgage. The creditor or | | | | For more help defining mortgage and loan terms I |
| lender in a mortgage agreement. | | | | recommend the following sites. |
| Therefore the borrower uses a mortgage to pledge | | | | has implemented a number of dictionaries in its search |
| real property to the lender (also called the mortgagee) | | | | results. Simply begin each search with the term |
| as security against the debt for the rest of the value | | | | "define" followed by the financial keyword you are |
| of the property. | | | | seeking a definition to. Example: "Define Mortgages". |