What is a Mortgage? - Definition

Mortgage - Definition
Lenders view a mortgage as any loan or debt that has a property being used as collateral. A mortgage can also be referred to as a lien, and frequently the type of mortgage is referred to by its position on the deed of the property. The position on the deed

refers to the order that debts will be paid off in. An example of this would be a second mortgage, which indicates that the loan is held in the second lien position. Some different terms used for mortgages include Home equity loan, Home equity line of credit, line of credit, Refinance, Judgment, Encumbrance, Execution, Betterment, Home Improvement Loan, and Home owner’s loan. All these terms indicate that the loan may be held using the property as collateral in turn making it a mortgage. It is absolutely important when you obtain financing through any financial institution that you make sure whether or not the loan will be secured against your property.