Banking Term: Mortgage
- A Mortgage is a method of using property as a security for the performance of an obligation, usually the payment of a debt.
- The term Mortgage refers to a legal device used for this purpose and it is also commonly used to refer to a debt secure by the Mortgage.
- It is a way to use one's real property, like land, a house, or a building, as a guarantee for a loan to get money
- The loan provides them the money to buy the house and the loan is guaranteed by the house.