May 242012

Do you give a mortage or take a mortgage?

Home buyingMost people have a mortgage on their home. Most people assume that they are the mortgagee and they “took out a mortgage” on their home.

I have yet to hear someone say ” I gave a mortgage on my home”, but in fact, that is what they have done.

That’s right, if you borrowed money to buy your home, you gave a mortgage, you didn’t take one.

Mortgage: A charge on land as a security for the payment of a debt with certain remedies for non-payment. The two parties to a mortgage transaction are referred to as the mortgagor(borrower) and the mortgagee (lender).  The lender lends the money and registers the mortgage against the property. In return, the borrower gives the mortgage as security for the loan, receives the funds, makes the required payments and maintains possession of the property.

Next time you visit a mortgage professional, tell them that you would like to “give them a mortgage”.  I think you will catch them off guard