In today's world the meaning of the term mortgage is better understood only when we see that the maximum number of peoples purchase their homes with a mortgage.
The term mortgages which has flourished the world's housing market is simply meant as a process by which the individual and the business can purchase the residential and the commercial property without paying the total value.
Mortgage is defined as a loan to an individual or a businessman for purchasing a real estate. In this case the real estate also acts as a collateral for the loan.
Parties In A Mortgage
In a mortgage dealing with the borrower is called as the mortgagor on the one hand and the lender is called as the mortgagee on the other.
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Parts of Mortgage
The mortgage contains two parts;
- Mortgage that is also the pledge and
- The Promissory Note that is the promise for repayment.
Several Types Of Mortgages
The types of mortgages can be defined depending upon their respective concerns with kind of property, lands, tenements, and hereditaments or of goods and chattels.