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Understanding Real Estate Vocabulary • February 27, 2024

What is a Mortgage: Understanding Real Estate Vocabulary

by Luke DeLacey

While you may be thinking, I know what a mortgage is, this is a silly term to be included, it’s probably one of the most used words in real estate so it’s good to revisit and burn into your brain.

A mortgage is a loan agreement between a lender and the home buyer (you), that lets you borrow money to purchase (or refinance) a home. This agreement gives the lender the right to take possession of your property if you fail to repay the money you’ve borrowed. There are many different rates for mortgages, and it’s smart to choose a lender that gives you the best interest rate.

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