Mortgage refers to the transfer of an interest in property to a lender as a security for a debt. The debt is usually a loan of money which the borrower has to pay back. The resulting debt for a borrower in a mortgage arrangement is what is referred to as a mortgage debt.

Mortgage involves the transfer of an interest in property from the owner to the mortgage lender, the interest in property therefore is the lender’s security for a debt. A mortgage arrangement is made on the condition that the interest in the property will be returned to the owner when the terms of the mortgage have been satisfied.

Often mortgage is associated with loans secured on real estate. Mortgage is the most common way through which individuals and businesses can purchase real estate. This is because very few people have enough savings to purchase property outright. Through this arrangement however, individuals or businesses don’t need to immediately pay the full value of the property.

A mortgage is the mortgage lender. It is a person to whom property is mortgaged. A mortgagor on the other hand is the borrower. It is a person who mortgages property. Considering the huge amount of money that is needed to purchase property, a mortgage lender will usually want security for the loan that will provide a claim on that security. A mortgagor normally owes the obligation secured by the mortgage. A borrower must meet the conditions of the mortgage otherwise he or she can run the risk of foreclosure in a bid by the creditor to recover the mortgage debt.