What Is a Mortgage, Exactly?
Contrary to what you may think, a mortgage is not a loan. A mortgage is actually a lien on the property which secures the loan. In this day and age, the terms mortgage and loan have come to be used interchangeably. Of course they are related but, in fact, they are indeed two different things. Lenders are well aware of this; it is best that you have this information as well. The word mortgage is believed to originate from the Old French words mort (meaning “dead”) and gage (“pledge”). If the borrower failed to pay what was owed, then the lender would receive the pledged property, thus making that property “dead” to the borrower. If the borrower paid the debt, then the pledge would be dead with regard to the lender. This etymology seems to be correct, based on modern English’s definition of the word. Perhaps you’re familiar with the terms mortgagor and mortgagee. But do you know which is which? The term mortgagor refers to the party that borrows money. This party grants, pledges, or give
