The original phrase “mortgage” translates as “death pledge”! But as this video explains, a mortgage is a loan obtained to purchase real estate.
The “mortgage” itself is a lien – a legal claim on the home or property that secures the promise to pay the debt.
The mortgage is a lien against your home – it is security for the lender – stating that if you do not pay your loan, the lender may foreclose (take possession of and title to) your home.
Now, the mortgage also typically states that you must take care of the lender’s security interest – your home (and that’s why they’re so darned long).
So, how do you take care of the lender’s security interest? By paying your taxes, paying your bills that can become liens against the property, keeping your house properly insured at all times, and not destroying or environmentally contaminating the home.
If you have any other questions about mortgages, please feel free to call us here at Cambridge Title & Closing Services.